**Cyprus –** A contentious demand from the government for farmers to settle nine years of accumulated water abstraction fees, dating back to 2017, has ignited widespread concern and calls for an immediate suspension of the charges. The directive, which requires farmers to pay for water drawn from boreholes over the past nine years, arrives at a particularly precarious juncture for the agricultural sector, already grappling with severe drought conditions, escalating operational costs, and diminished incomes.
The water abstraction fee, legislated in 2017, was regrettably not enforced by the relevant authorities until now. Consequently, farmers are being confronted with substantial back payments, with individual liabilities reportedly ranging from a few thousand euros to sums exceeding €100,000. This retrospective collection has been met with considerable consternation, particularly given the prolonged period during which these fees were not levied.
Farmers' representatives convened with members of the legislature on Tuesday to articulate the dire implications of this financial obligation. They underscored that the current climate, characterised by an unrelenting drought, has severely impacted water availability, leading to reduced crop yields and a subsequent decline in revenue. Compounding these challenges are the persistently high electricity tariffs and the exorbitant cost of fertilisers, which have further squeezed already tight profit margins.
Yiannakis Gavriel, President of the House agriculture committee and an Akel deputy, strongly criticised the government's timing and approach. He characterised the decision to pursue back payments as "an incomprehensible decision, coming at the most difficult time for farming." Mr. Gavriel advocated for a suspension of the payment until the agricultural sector can navigate its current adversities and the overall situation improves.
The urgency of the situation has prompted further dialogue. The Permanent Secretary of the agriculture ministry is scheduled to engage in discussions with farmers' representatives this Friday. While the ministry has indicated a potential willingness to explore payment arrangements for overdue fees, such as settlement in installments, the fundamental demand for the accumulated sum remains a significant point of contention.
The ramifications of this policy are profound. For many farmers, already operating on slender margins, the prospect of settling such considerable outstanding charges presents an almost insurmountable financial hurdle. There is a palpable risk that a significant number of agricultural enterprises could be rendered insolvent, threatening the livelihoods of those employed within the sector and potentially impacting the wider rural economy. The agricultural community is bracing for what is widely acknowledged as one of the most challenging years in recent memory, and this latest financial demand only serves to exacerbate an already critical situation. The coming weeks will be pivotal in determining whether a mutually agreeable resolution can be found to avert a deepening crisis within Cypriot agriculture.