The state’s treasury has supported farmers with more than LE1 billion over the past two fiscal years, according to a report Finance Minister Ahmed Galal received from the ministry’s general budget sector.
The treasury will give LE473.2 million to farmers during the 2013/2014 fiscal year, up from LE183.9 million in 2012/2013 and LE346.1 million in 2011/2012.
The report explained that allocations for the current fiscal year include LE340 million to subsidize the differences resulting from interest rates on botanical production loans offered by the Principal Bank For Development and Agricultural Credit.
The treasury will pay 6 percent of the value of the interests provided to farmers.
LE70 million of the appropriations are directed to financing cotton pest control. Farmers will be granted LE100 per feddan of cotton to purchase pesticides. The subsidies are to be disbursed through the agricultural bank.
Edited translation from Al-Masry Al-Youm