The recently inaugurated Israeli coalition government has announced a new agricultural and food policy that could put an end to the ongoing price increases in the country. Moreover, high import tariffs on many foreign food products will be lowered and European admission criteria will now be applied.
The new coalition has unveiled a plan to reduce the costs of fresh produce by abolishing customs duties and opening the sector to competition, potentially ending years of food prices that were far above the Western average.
The new plan also includes financial and other support for farmers to absorb the greatest shocks. Additionally, investment and innovation subsidies will be provided for the purchase of new equipment and machinery, collaboration with startups, and more.
The proposal will be part of an economic package in the 2021-2022 budget, the first since Benjamin Netanyahu was ousted after 12 years as prime minister during which Israeli farmers benefited from import barriers and quotas.
Prices of vegetables and fruit have risen by more than 80% in recent years, leading to public outrage. According to the plan, taxes on eggs and many other fresh products will be reduced.
The new agricultural policy also broadens the rules for importing vegetables and fruits through the approval of European standards. As a result, Israeli ministries expect a significant increase in the range of products offered in Israeli stores.
According to Finance Minister Avigdor Lieberman, the reform of the agricultural sector has two main goals: to bring order to the economy and to control price increases. Agriculture Minister Oded Forer called it the greatest agricultural reform in the country in the past thirty years.