Economy

Spanish farmers to stage nationwide protests as diesel prices soar

Spanish farmers to stage nationwide protests as diesel prices soar RUSSPAIN.com © russpain.com
Spanish farmers to stage nationwide protests as diesel prices soar © russpain.com
Spain’s basic farming unions are mobilising for mass protests after agricultural diesel prices surged 48% in a year. With state subsidies about to expire and no alternatives offered, producers warn that their livelihoods and the country’s food supply are at risk.

Spain’s leading farming unions, Asaja, COAG and UPA, are preparing nationwide protests over what they describe as an “unbearable” rise in diesel prices. Agricultural fuel now costs 1.649 euros per litre, up 48% over the past year, information from official data from the Ministry of Agriculture. Producers say the surge has pushed many to breaking point and threatens the viability of their businesses.

The immediate concern is state aid for agricultural diesel, which is set to expire on September 30. With less than two weeks to go, farmers say authorities have yet to present concrete proposals or alternatives. The unions accuse the government of inaction, warning that “the countryside cannot wait any longer” as soaring fuel costs threaten to halt food production during the impressive sowing, grape harvest and maize campaigns, with the olive harvest approaching. The current compensation scheme for agricultural and fishing diesel provides up to 20 cents per litre, with 65 million euros allocated to the support.

In a joint statement, Asaja, COAG and UPA say sharp increases in fuel and fertiliser prices, which have worsened since the outbreak of war in Iran, have made production costs unsustainable across all regions. They argue that farm profitability has “collapsed” and warn that, without immediate intervention, many operations could be forced to close or drastically cut output. Several Spanish media outlets have reported that the government’s “economic shield” for the sector will expire at the end of September, adding pressure on policymakers to act quickly.

While the three basic unions coordinate their response, the Unión de Uniones de Agricultores y Ganaderos, also a member of the national agricultural advisory council, says it was not invited to join the planned protests. The group says it will decide on its own actions based on local conditions and the progress of each agricultural campaign, reflecting the lack of a unified strategy within the sector. Recent statements from the Unión de Uniones confirm this division among agricultural organisations.

Government officials have so far offered few concrete solutions. Agriculture Minister Luis Planas has said the cabinet is still “reflecting” on possible measures and expects a decision “in the coming weeks.” He has also said the government is preparing new compensation measures for the diesel price increase, within the maximum allowed by the European Commission, and that this legal structure remains valid until December 31. The government may cover up to 70% of the price increase, while the current aid is set to expire on September 30 unless extended. Planas described the situation in the Red Sea and the Strait of Hormuz as a “bad development” for global supply chains but stopped short of promising new support for Spanish farmers. Meanwhile, Economy Minister Carlos Cuerpo is scheduled to meet food industry and fertiliser representatives to assess the economic impact of the conflict in Iran; no immediate relief for farmers has been announced.

Without affordable fuel, Spanish agriculture faces operational paralysis at a critical point in the production calendar. The unions’ call for sector-wide unity and street demonstrations reflects a widening rift between rural producers and policymakers. With the fuel-aid deadline approaching and no resolution, the government’s hesitation threatens the livelihoods of thousands of farmers and the stability of Spain’s food supply chain.

Lara Carter RUSSPAIN.com
Journalist

Lara Carter

Lara Carter is a journalist at RUSSPAIN.COM covering Spanish current affairs, culture, tourism, transport, economy and society.