The agriculture sector has been on the decline, recording a low level of less than two per cent of gross domestic product over the last five years, said Finance Minister Colm Imbert
He added that reduced investment and farmers' participation plagued advancements in the sector.
In his budget presentation in Parliament on Monday for the financial year 2023-2024, he added that food security is high on the Government's agenda.
"We are redoubling our efforts to change the dynamics of the sector. Regrettably, food imports per annum have been escalating, reaching over $5 billion in 2019-2021 and $7.3 billion in 2022," he said.
"Making the agricultural sector tax-free is an essential component of our policy framework. This objective is targeted for completion in 2024."
The minister added that legislative change, with all remaining ambiguities, omissions, and loopholes in the law, leads to different interpretations of what aspect of agriculture is tax-free, and that needs to be clarified and resolved.
The Government, he said, also intends to review, update and improve, when necessary, all concessions, incentives and rebates in the sector, such as the fuel rebate for fishermen, to make them more realistic and relevant.
"We recognise the need for innovative and creative solutions to revitalise the sector. In response to the aging farmer population, we seek to attract young people. Within the past three years, we have made various programmes available to young people interested in the agricultural sector," Imbert said.
Imbert said the Government is delivering the granting and renewal of leases for state land to farmers in a timely way, allowing them to access financial assistance, fiscal incentives mechanising agricultural activities, and entry into secondary production through value-added and cottage industries.
"Central to this process is the already installed ICT infrastructure, which is generating significant benefits to our farming population through enhanced data collection and improved customer service delivery," Imbert said.
"We are actively seeking to expand agricultural production."
He said the Government is developing and providing facilities at the St Augustine nurseries and other facilities to heighten public awareness of crop conservation and biodiversity.
"We are rehabilitating 240 kilometres of access routes. We are upgrading fish landing sites wholesale fish markets to expand entrepreneurial activities and opportunities."
For vessel owners and operators, fisherfolk, vendors, downstream industries, and the wider community, the minister said the Government is rehabilitating and replanting 900 acres of coconut to boost the industry "which employs almost 2,000 people from production to value-added activities.
"We are strengthening the farm-to-table project, which is building institutional and educational capacities to promote sustainable agriculture, as well as the farm to agro processing initiative."
He added that the Government is also rehabilitating the physical infrastructure of
