Less than half of agricultural exports maybe in need of government subsidies

While discussions are continuing around mechanisms to implement by early next August the recent decision by the Cabinet to support exports (for full news, go to (http://bit.ly/1HNcRLp), some exporters have actually shifted to the sea route. In this respect, the International Chamber of Navigation recorded a rise in export activity during last June compared to that of the previous year noting an increase in traffic from 5481 to 9920 regular containers (that is by 81%), and an increase in refrigerated containers from 2576 in June 2014 to 4582 containers during last June (an increase by 78%). For his part the Investment Development Authority of Lebanon, (IDAL), President Nabil Itani, indicated a 40% decline in exports following the closure of the land borders, thus pointing out to a remarkable rise in the size of maritime exports, according to the Al Akhbar newspaper, who concluded that significant amount of products in fact were exported without receiving any government support, and estimating that perhaps only 40% of exports are in need of such subsidies. 

Itani on the other hand disclosed that studies on which the government decision was founded will now need to change. He explained that while the local exporters of potato mainly, have resorted to maritime transport by way of containers, they are unlikely to shift to the RoRo vessels that carry truck loads of goods which are relatively more expensive. Itani made clear that the estimated 40% who will need to be supported are agricultural exporters mainly, who have difficulties exporting their fresh vegetable and fruits produce through regular containers. “What we care about mostly at present is to handle those exports that were delayed from reaching their destinations,” Itani concluded.

(Source: Al Akhbar, July 24 2015)