Olive oil: The increased prices are a temporary phenomenon – Newsbomb – News

The Minister of Rural Development, Lefteris Avgenakis, spoke about the increase in olive oil prices

He characterized the phenomenon of the increase in olive oil prices as temporary the Minister of Agricultural Development and Food, Lefteris Avgenakis in an interview with the “Peloponnisos” newspaper. “Prices, especially in olive oil, are shaped by supply and demand and reduced production due to the climate crisis has affected prices“, he commented.

The minister also referred to the issue of the labor shortage, which affects the production of olive oil as well, referring to the bill being prepared by the Ministry of Immigration and Asylum. “The Ministries of Labour, Interior and Foreign Affairs also have their say. The Ministry of Rural Development and Food is the latest to be involved. A range of possible practical measures are being considered between these and the work subsidy”.

Mr. Avgenakis also mentioned that the government has taken and will continue to take concrete measures to contain prices. “We have taken a series of measures aimed at reducing production costs. The last is the reduction by 11 units of VAT, from 24% to 13%, on agricultural machinery. However, we must not forget the 50% reduction in taxation for participants in cooperative schemes (cooperatives, producer groups and contract production). Also that this year the government will proceed with the return to the farmers of the Special Consumption Tax on oil”.

Finally, he noted that in the last four years, ELGA gave more than 1.2 billion euros in compensation.