The government will fork out €12 million next year to continue subsidising flour, cereal and animal feed.

Agriculture Minister Anton Refalo announced on Monday the government will extend the existing subsidy scheme throughout next year, as announced in last month's budget.

The scheme intends to cushion the rising cost of staple foods for farmers and food importers as long as they commit to keeping prices stable for consumers.

The scheme will be extended as announced during last month's budget. Photo: Matthew Mirabelli

It is part of the government's effort to mitigate inflation and supply chain issues brought about by the war between Russia and Ukraine, which are the world's two largest flour producers.

"We have and we will continue to support farmers, animal rearers and fishers and sustain the sector, which has already proved to be very resilient," Refalo said.

"Next year's budget has an extra €28 million allocated to schemes for farmers and fishers."

€12 million will go to subsidising flour, cereal and animal feed. Photo: Matthew Mirabelli

Times of Malta asked Refalo whether the scheme will continue to be extended for as long as international food prices remain unstable. He was non-committal but stopped short of saying the government would continue to extend financial aid for as long as needed.

"Our track record is the proof for the future," he said.

"We have already helped this sector a lot and we will continue to do so."

Rural Affairs Department Assistant Director Marcelle Agius said 12 companies have benefitted from the scheme so far. Their aid will be extended and applications were opened on Monday for other farmers who wish to join the scheme during 2024.

Applications can be found on the Agriculture Ministry's website.

Refalo also said farmers can benefit from another €3.8 million scheme that helps them buy fertilisers for their fields while fishers benefit from a €1 million scheme that subsidises their boat fuel.