Għaqda Bdiewa Attivi raises the alarm bells over removal of pitkala bank guarantee

The farmers group claim that the Pitkala Association is trying to revoke an obligation on fruit and vegetable traders to provide a bank guarantee on their income

Għaqda Bdiewa Attivi is concerned about a request being floated by the Pitkala Association to revoke an obligation on pitkali market fruit and vegetable traders to provide a bank guarantee on their income.

"In the past there have been cases where farmers had to wait before being paid by the pitkala for their products, and so government thought to safeguard the interests of farmers by asking the pitkala to provide a bank guarantee, which would do good in these circumstances," the association explained

This change effectively means a change in the criteria to obtain a pitkala license, which would only be granted upon provision of the guarantee.

According to the association, the Pitkala Association don't want this guarantee to be paid any more.

"This is unacceptable. The costs and risks of vegetable and fruit production are very high, and in light of other major challenges such as competition with an imported product, costs are always rising. Challenges in the resources available to producers means that uncertainties in the payment of products would amount to a significant regression in the position of farmers to continue to grow food for the Maltese population and take care of our rural environment."

"The farmer should remain covered by a system that ensures that the farmer is paid for his products without delay, espceially after months of waiting, suffering, risks and prudence to deliver the same products on our tables."

Għaqda Bdiewa Attivi appealed so that an agreement will be reached as soon as possible.

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