The government allocates EGP 473.2m of its new budget in the fiscal year 2013-2014, to support farmers, compared to EGP 183.9m in the last year, according to a report sent to Minister of Finance Ahmed Galal.
The report revealed that public coffers allocated more than EGP 1bn to boost farmers during last three years.
The report indicated that the provisions of the current fiscal year includes EGP 340m to support the interest rate differentials on vegetable production loans provided by the Principal Bank for Development and Agricultural Credit (PBDAC).
The minister emphasised that the treasury is going to pay 6% of the interest rate on agricultural production loans submitted by PBDAC, and the farmer will pay only 5%.
Galal said the treasury will allocate EGP 112.9m to implement the presidential decree to exempt farmers who have trouble repaying the loans.
“I hope the minister’s decisions come into effect,” said the head of the agricultural central organisation, Fouad Abdel Meguied.
Abde Meguied emphasised that this decision will be strongly supported by the small farmers, especially those who have defaulted on their loans.
Abdel Meguied said shortage of diesel fuel and the lack of fertilisers are the most pressing problems facing small farmers.