The cabinet on Wednesday approved €1 million in emergency aid to help farmers cope with rising electricity costs caused by prolonged drought.

Over the past three years, reduced rainfall has cut irrigation water and worsened dry conditions, forcing producers to drill and use more electricity for irrigation, cooling and crop protection, sharply increasing energy costs and squeezing agricultural income, the ministry said.

The council approved a €1,000,000 fund to subsidise part of farmers’ electricity consumption between July 2024 and August 2025, under the de minimis aid scheme for professional farmers using designated agricultural tariffs.

The measure is intended to reduce the impact of higher energy use by lowering producers’ electricity costs, allowing them to meet their farms’ needs without undermining the viability of their operations.

Payments will be issued through the Electricity Authority of Cyprus, which will credit beneficiaries’ bills with the aid amounts calculated by the ministry and covered through savings within its budget.

The ministry described the support as a targeted intervention aimed at keeping farms operational under prolonged drought and sustained high energy costs, thereby safeguarding the long-term sustainability of Cypriot agriculture.