Interest in subsidy grows

INTEREST in the Government’s freight subsidy programme has jumped significantly after the second shipment of fresh produce was sent to Port Moresby from Lae, National Planning Minister Sam Basil says.
Basil said after the first shipment, on May 14, of 49 containers (29 dry food containers and 20 refrigerated containers) to the National Capital District, more farmers had joined the programme with the second shipment of 71 containers.
Basil said some farmers had also enquired about using the programme to transport cash crops such as cocoa, copra and coffee.
Basil said the State had paid a K3 million freight subsidy to the Lae-based shipping company Bismark Maritime to ship agricultural produce and was pleased with the feedback from growers.
He said the programme would be assessed after the third shipment in terms of supply and demand.
The programme would benefit SMEs (small-medium enterprises) in the national capital while allowing farmers from Highlands and Mamose to make a profit during the state of emergency and lockdown period which had affected businesses and services nationwide.
Basil said the third shipment could see even more containers being shipped to Port Moresby but added that the shipments would need to be managed to avoid oversupplying the market.
National Planning deputy secretary Michael Kumung said with the increased interest from farmers, the K3 million freight subsidy was insufficient to cover the first six months of the programme.
“The money is exhausted because of the demand and interest from the farmers.
“Based on reports we’ve established starting from producers and to the buyers, we will give a report to the Government and continue this,” he said.