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Diario PYME

Canarian Government Leaves Nine Million Euros in Aid for La Palma Banana Growers in Limbo

The Ministry of Agriculture has not paid the remaining 81% of the promised aid for damages caused by the Tajogaite volcanic ash.

Image of bananas affected by volcanic ash in La Palma.
IA

Image of bananas affected by volcanic ash in La Palma.

The Government of the Canary Islands has suspended the payment of nine million euros, representing the remaining 81% of promised aid to La Palma banana growers to offset the additional costs incurred due to ash from the Tajogaite volcano.

The Ministry of Agriculture, Livestock, Fisheries and Food Sovereignty of the Canarian Government has not issued any official communication regarding the outstanding payments to approximately 4,000 farmers in La Palma. This initial commitment aimed to mitigate the impact of volcanic ash from the Tajogaite eruption, which began in September 2021 and ceased activity in December of the same year.
In April 2024, the autonomous department published a resolution for direct aid, which to date, has been the only one. This aid, totaling around two million euros, only covered 19% of the damage calculated for the 2021-22 season, the most affected by the eruptive activity of the volcano in Cumbre Vieja. Initial payments were made to about 3,000 banana growers on the island, excluding amounts less than 100 euros.
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"The banana sector in La Palma, in general, is furious, as they understand that the Ministry has disengaged, at least until today, from paying the outstanding amounts."

sources from the banana sector
The situation involves two main administrations. On one hand, the Ministry of Agriculture, which made the initial commitment between 2021 and early 2022, and has justified the lack of payment due to budgetary constraints. On the other hand, the Island Council of La Palma, which has acted as a manager for other special agricultural aids, such as the 6.5 million euros provided by the autonomous community to compensate for the loss of income for La Palma bananas in the 2022-23 season.
However, the Council's resolution regarding the 6.5 million euros has generated controversy, with two appeals pending resolution. These appeals criticize that the compensation was limited to farms in only five municipalities on the island, instead of covering all banana growers. Although there is political will to expand the scope of action, the sector remains in anticipation.
Frustration in the sector is palpable, especially considering that the Canarian Government has defined a plan to forgive up to 3.5 million euros in irregularly collected aid by banana growers in the 2021-22 season. Some producers suggest that the sum of these 3.5 million and the 6.5 million from the Council, if managed differently, would have been sufficient to cover the remaining 81% of the ash-related aid for all banana growers on the island.

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