Italy to boost cereal production in Tunisia, signs US$9.4M contract deal
TUNISIA – The Italian Agency for Development Cooperation (AICS) has signed funding contracts worth 8.71 million euros (US$9.4 million) to boost cultivation of cereals in Tunisa.
This new financial boost is provided by the European Union (EU) as part of the “Support for Sustainable Development in the Agriculture and Artisanal Fishing Sector in Tunisia (ADAPT)” program implemented over the period 2020-2028.
The contracts were signed on February 12 between the agency and 4 grain collectors mandated by the Cereals Office. The approved grain collectors include COSEM, SOSEM, Comptoir Multiservices Agricoles (CMA), and SSCC.
According to the agreements, this funding is intended to subsidize the cultivation of cereals during the agricultural seasons of 2023/2024 and 2024/2025.
The subsidies would be distributed by the signatory collectors to more than 3,000 Tunisian cereal farmers, in the form of discounts on inputs, services and agricultural equipment. The stated ambition is to help small farmers reduce their production costs.
“This initiative is part of a desire for direct financial support for producers, making aid more accessible and contributing to the promotion of sustainable and resilient agriculture in the face of climate challenges,” read the report.
According to the partners, the agreements will not only allow efficient distribution of resources, but also facilitate access to modern agricultural technologies and practices.
As much as Tunisia relies heavily on imports to sustain its domestic consumption of cereals, the country has ramped up efforts to improve local production to reduce overreliance on imports and promote localization.
In June 2023, the country joined hands with the African Development Bank (AfDB) to finance the Inclusive and Sustainable Development Support Programme for the Grain Sector (PADIFIC) aimed at increasing the country’s strategic grain storage capacity.
At a total loan agreement of US$87.1 million, the grant was envisioned to enable Tunisia to increase grain storage capacity from two to three months’ requirements.
The plan included the rehabilitation and modernization of the Rades and Bizerte port silos, the creation of a new silo at Djebel Djeloud, and the relaunch of grain transport by rail.
In addition, the Cereals Office announced plans to provide 70,000 tonnes of seeds for the 2024/2025 cereal campaign, strategically putting up measures to promote production.
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