Dr Agius said that as from 1 May, the market had been liberalised and levies removed. Consumers were now being given a wider choice of agricultural products, many of which were being sold at a reduced price.

The second factor that contributed to this decline was the fact that the majority of products whose price had been reduced were not subject to competition from what he called “important products” such as cauliflowers, cabbages and marrows.

Dr Agius said the third factor was that the production of nectarines, peaches and plums was three times greater than it was a year ago.

The incidence of agricultural disease was also low which had led to more than 0.3 million kilogrammes of produce, Dr Agius added.

He said that the government will be handing out subsidies amounting to Lm207,784 for the period April to June. This meant that every farmer will be given Lm10 for every tumulo of land cultivated and Lm10 for every tumulo of land where potatoes are being grown.

The government was also helping farmers set up producers associations which will help farmers educate themselves about how to take full advantage of the land they cultivate.

Dr Agius added that the pitkalija open market was being upgraded, to include a grading station, cold storage facilities and packaging systems.

This would cost around E1.43 million, and the funds will come through the fifth protocol with Italy.

Giving more statistics, Dr Agius said that this year the production of water-melons had increased by 16 per cent, resulting in a 159 per cent increase in income, a record for the last five years.

The weight of peaches produced was 132 per cent higher than that of last year, yielding a 79 per cent increase in income.

Subsidies on these two products between May and July will be more than Lm135,000.