EU $630-m banana pact

THE European Union (EU) yesterday signed a $630 million banana support agreement with the Jamaican Government.

Under the first phase of the programme, farmers affected by Hurricane Dean in August last year will receive $222 million in assistance over the short term.

The remainder - $408 million - will fund a rural diversification programme in the six traditional banana growing parishes - Portland, St Mary, St Thomas, St James, Clarendon and St Catherine - and will be extend until 2012.

Agriculture Minister Christopher Tufton said the Rural Agricultural Development Authority (RADA) will administer the programme to ease the dependence on banana in these parishes. Projects in livestock, fisheries and greenhouse vegetable cultivation, he said, were being considered.

"This is expected to provide alternative livelihoods and stimulate economic growth in these communities," Tufton said at the signing held at the Ministry of Agriculture in Kingston.

The minister said that as part of the $222 million allocation, "fertiliser, fungicides and orchard oil" would be distributed to banana and plantain farmers who suffered losses from Hurricane Dean.