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Spanish garlic sector outraged by massive rise in insurance fees

The National Association of Producers and Marketers of Garlic, ANPCA, commented on the move made by AGROSEGURO, which is expected to significantly raise the insurance fees for garlic in several of the main producing regions for the 2020 and 2021 campaigns.

The region of Castile-La Mancha is the biggest garlic producer in Spain, accounting for 68.59% of the country's total acreage in 2019 (18,582 hectares, according to MAPA). The provinces of Albacete (8,500 hectares, 31,37 % of the national acreage), Ciudad Real (5,002 ha; 18.46%) and Cuenca (4,600 ha; 16.97%) are the most representative.

The ANPCA said that the disproportionate increase of fees in the main production areas is not assumable and will take a significant toll on the production costs. "It is true that AGROSEGURO contacted the sector to try opening a debate on how to address this decompensation, but in the end, they have imposed a totally unaffordable solution for our sector. Trying to correct two years of deviation, with such strong increases in the main production areas, will severely affect the producers in this socially-oriented sector which generates a lot of employment, and which has to make do without any type of aid. And insurances are necessary, given the large amount of capital that is invested in the production of one hectare of garlic," said Mr. Amador Gálvez, president of ANPCA. "Longer-term planning, with a 5-year insurance plan, applying small corrections based on the development of the ratio between premiums and indemnities each campaign, would be a more suitable solution."

The ANPCA says that these strong increases in the agricultural insurance fees in the 2020 campaign will lead to a significant reduction in the number of growers covered. "The price of garlic insurance in several of these counties is already very high, and with the increases, garlic insurance will become a luxury that many of the producers will not be able to afford," says Mr. Antonio Escudero, a local garlic producer.

The ANPCA is asking that measures be taken by the central administration to prevent garlic producer from being unable to get agricultural insurance. The ANPCA currently represents more than 1,800 producers and the 61 most important garlic marketing companies in Spain, which together account for 73% of the total production marketed in the country, grown on ​​12,740 hectares.

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