Fruits and Vegetables: Reform or Surrender to the Agricultural Lobby?

The Ministers of Agriculture and Finance are publishing a draft order for a public hearing regarding reductions in tariffs on fruits and vegetables.

According to the ministers - in order to immediately lower the consumption basket.

A brief check shows that this is, at best, the edge of the basket.

A real reform or a surrender to the pressures of the farmers?

I have Seville

23/12/2021

Thursday, 23 December 2021, 08:55 Updated: 09:38

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Will something finally move in the prices of fruit and emptiness in Israel? Do not rush to celebrate: even if the proposal of the Ministers of Finance and Agriculture is accepted in its entirety, it will take time until the prices of tomatoes, cucumbers, bananas and apples are reduced, if at all. In fact, if one examines the list of fruits and vegetables published by the ministers (for a hearing), one finds that very little is left of the promises of reform on agricultural products.

It should be emphasized: although in the long run, we are promised, protective caps will also be reduced on more significant components in the basket of vegetables and fruits, but a 6-stroke section that will be spread over the next five years - and until then, ministers will probably be replaced - but the strong agricultural lobby will remain.

The proposed order includes the immediate abolition of customs duties on a number of fruits and vegetables, including: avocados, garlic, pea mushrooms, beans, figs, artichoke pineapples and more, in order to immediately lower the consumption basket.

The rest of the caps on all fresh, frozen and canned fruits and vegetables will be gradually reduced over 6 beats over a period of 5 years in order to allow Israeli agriculture to adapt to the new situation.

Although the basket mini fruit and vegetable customs overhead will be reduced or canceled, claiming the Ministry of Finance "reform agriculture to reduce the cost of living in agriculture, fruit and vegetables is underway. Ministers of Agriculture and Finance apply the steps in the reform approved the government's decision to lower the cost of living in fruits and vegetables.

Order a draft "For a public hearing in which the public will hear his case, and in particular the farmers' public, and then it will be signed and entered into force."

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Forer: "Opening the markets will lower the price for the consumer"

Agriculture Minister Oded Forer

"outline opening the market to competition and lowering prices of fruits consumer promoted in accordance with the decision of the Government and the side support measures and generous grants to farmers in Israel. We pass protection Cassit direct support and look forward to completing the discussions with representatives of farmers in the coming weeks until the signing of the order as part of a hearing.

Open markets will reduce "The price to the consumer will expand the range of products and enable the development of local agriculture through direct subsidies and grants to farmers. I expect from the representatives of the farmers' organizations a fruitful discourse to formulate the best outline for direct support for local agriculture."

Minister of Agriculture Oded Forer: "Direct support for local agriculture" (Photo: Niv Aharonson)

Expected savings: NIS 840 per year per household

Fruit and vegetable prices have skyrocketed by over 80 percent in recent years.

The reduction of customs duties will increase competitiveness in these industries and thus the Israeli consumer will enjoy a significant reduction in the prices of fruit and vegetables;

The savings expected from the reform are NIS 840 per year for every household in Israel, which adds up to a total savings of about NIS 2.7 billion per year.

The reform includes a broad support package for the agricultural industries, including direct budget support for each farmer, expansion of tax benefits for farmers through a law to encourage capital investments, support for marking the country of origin, lowering inputs for farmers (pesticides, etc.) and investing over NIS 2 billion for innovation and productivity growth .

This is in addition to investment and innovation grants for the purchase of innovative equipment and machines, collaborations with startups and more.

Will the consumer basket be discounted immediately?

So this is, not really (Photo: ShutterStock)

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• fruits

• Fruits and Vegetables

• vegetables

• Customs

• Avigdor Lieberman

• Minister of Finance

• Minister of Agriculture

• Prices

• Cost of living