P/budget 2025, Denaj: Increase support with subsidies oriented to the effectiveness of the scheme, formalization of the agricultural economy and EU directives
The Minister of Agriculture and Rural Development, Anila Denaj, presented the 2025 draft budget for the agriculture sector to the Parliamentary Committee on Economy and Finance.
In her speech, Minister Denaj made an overview of the sector, where she emphasized that the economic development in the agricultural sector is already an irreversible fact and trend, which is proven by the facts and figures, such as:
• Increasing the area of greenhouses by 70% more;
• Increase in exports by 2.6 times more;
• Doubling of the rehabilitated irrigation surface.
Referring to the draft budget of 2025, Minister Denaj said that the biggest weight in the budget is the investment item with 20%, irrigation and drainage infrastructure, as well as flood protection. This item has increased by 18% from year to year, even though there is still an imperative need to focus on investments due to the climatic conditions and the Albanian terrain.
One of the main aspects that Minister Denaj emphasized was the effectiveness of the National Scheme over the years, where the focus, according to her, will be the "unification of operators". "The problem encountered in all the farmers' tables and protests throughout this year has oriented the need for the legal force of the transaction through what is called a contract. We have thought of moving towards an even wider organization than bilateral contracts, in the direction of combining the union of operators both on a horizontal level - farmers, and on a vertical level - collectors, exporters, hoteliers, which is otherwise called 'Contract Farming', Denaj said, adding that we are waiting for a legal proposal and the combination of this scheme with the subsidy scheme from FAO.
"Within the year, both elements will be part of the analysis for the new scheme, aiming for the union of operators, the formalization of transactions and food safety to be the three basic criteria aimed at by the scheme, where the involvement of farmers and agricultural sectors will come naturally in their function," said Denaj.
One of the objectives of the next year's budget, the minister mentioned as very important in the economic development of the Albanian agricultural economy today, the promotion of competitiveness through the focus on tradable and valuable products, the quality of the products, the increase of the economic mass to reduce costs, as well as the promotion of mechanization and innovation.
Regarding the draft budget of 2025, Denaj emphasized that this budget is expected to reach 15 billion ALL, with an increase of approximately 4% compared to the budget of 2024. This increased fund aims to support and strengthen the financing of key policies such as development sustainable agriculture, guaranteeing food security, sustainable development of the fishing sector and the blue economy, as well as improving administrative and institutional capacities, cooperation of actors, innovation and digitalization.
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