The Ministry of Agriculture, Fisheries, Food and Animal Rights deplores the actions taken by the Pitkala Association on behalf of its members to stop the Farmers ’Cooperative and those who are not members of the Association from selling agricultural products from the Pitkalija Center. These actions will disrupt the operation of the market and will have a negative effect on the farming community.
Actions are being taken by the Association in the light of its request to abolish the bank guarantee imposed on any renewal of an intermediary’s license or issuance of a new license in accordance with the Subsidiary Legislation. 117.04.
The ministry stresses that the bank guarantee is intended to act as a security instrument so that any payment due by the intermediary is honored and therefore this is not a frivolous requirement that was created simply to create some extra burden on the intermediary. The current law makes it clear that an intermediary wishing to renew the license in order to operate as a Pitkal must provide a bank guarantee.
The ministry had several meetings with the Association and always showed good faith in the discussions that took place. These issues were discussed at these meetings as well as other demands, including the increase in the commission where the Association is asking for it to be doubled. The ministry informed that in the interest of the sector and the consumer, it is ready to find a final solution that does justice to all parties concerned. However, until an agreement is reached on an alternative system providing the same level of assurance, the renewal of licenses or the issue of new licenses shall be subject to a guarantee. The ministry cannot risk exposing unpaid farmers. Furthermore, the fact that the members of the Association ran out of operating licenses cannot for any reason be attributed to the ministry.
In order to mitigate the impact of the Association’s action, the ministry, with the help and cooperation of farmers’ associations, is taking the necessary measures to support farmers to sell their own products from the Pitkalija Center. To facilitate the process, on Monday 5 April, farmers will be able to enter the Pitkalija Market at 2.00 am and ministry officials will be guiding farmers to a space from which they can sell their products directly. Greengrocers will be allowed to enter the Pitkalija Center at 4.00 am so that there will be enough time for the farmers to set up shop.
As promised by the government, this year the ministry began implementing the reform of the Pitkalija operation, which aims to improve the farmer’s position in the value chain by improving the product traceability and transaction transparency. The project will also improve to increase consistency in the quality of the product reaching the final consumer.
The ministry remains committed to ensuring that the interests of farmers are protected.
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