Persistent political and socio-economic challenges have led to social tensions and delayed economic recovery in Tunisia. This has caused high unemployment rates and regional conflicts, contributing to food insecurity in Tunisia. According to the World Food Programme (WFP), 16.6% of Tunisians live below the poverty line, while 30% of children under 5 and pregnant and nursing women suffer from anemia. Furthermore, Tunisia’s high dependence on agricultural imports, exacerbated by economic challenges and a high inflation rate, has led to food shortages. The ongoing drought has strained agriculture, decreasing harvest and diminishing dairy production. Agricultural subsidies have been crucial in addressing these ongoing challenges, shaping the country’s food production landscape and influencing socioeconomic dynamics. 

Tunisia’s agricultural policies have evolved drastically since its independence in 1956. With an initial focus on self-sufficiency, the country gradually shifted toward an export-oriented approach which led to increased reliance on food imports. This has caused implications for Tunisia’s food security and has made it vulnerable to global market fluctuations. 

Types of Agricultural Subsidies

To assist in its agriculture, the Tunisian government has multiple subsidy mechanisms. These aim to boost domestic production, stabilize food prices and support rural livelihoods.

• Input subsidies. Covers fertilizers, seeds and machinery.
• Price support. Ensures minimum prices for specific crops and financially protects farmers against crop losses due to natural disasters, pests or other unforeseen events. 
• Credit subsidies. Provides low-interest loans to farmers
• Irrigation subsidies. Supports water management infrastructure.

Impact on Domestic Food Production

Agricultural subsidies have significantly influenced Tunisia’s food production patterns. While they have helped maintain production levels of certain crops, it has led to changes in crop choices which has implications for both food and environmental sustainability. It is clear that Tunisia’s agricultural model based on water-intensive hybrid seeds is unsustainable, thus farmers have moved to a more practical and sustainable approach of using local seed varieties known as “Mahmoudi seeds.” The seeds are better suited to the Tunisian climate and therefore are a necessity to adapt to climate change. Spreading awareness of the local seeds can increase the shift toward using said seeds, support the agriculture sector and reduce food insecurity in Tunisia

Benefits of Agricultural Subsidies

The primary benefits of Tunisia’s agricultural subsidy system include:

• Price stabilization. Subsidies help support consumers from global price fluctuations, particularly for staple foods such as flour, vegetable oil, rice and sugar. 
• Rural livelihood support or poverty reduction. By providing stable income for farmers, subsidies help maintain rural economies. A study by the Friedrich-Ebert-Stiftung found that using Proxy Means Testing (PMT) in Tunisia results in significant errors in both excluding eligible recipients and including ineligible ones. This is due to infrequent household surveys and the large informal economy in Tunisia and similar developing countries. The research determined that food and energy subsidies are more effective at reducing poverty than the targeted cash transfers provided by Tunisia’s National Program of Assistance to Needy Families.
• Food availability. Subsidies ensure a consistent food supply, even during periods of global market instability.

International Aid and Cooperation

International support plays a significant role in agricultural subsidies and Tunisia’s agricultural sector. 

• European Investment Bank. As of 2022, the EIB has provided loans to finance the rehabilitation and construction of silos and cereal reserves in Tunisia. This aims to increase Tunisia’s cereal storage capacity and support permanent working capital. This responded to the grain supply shock caused by the Russian invasion of Ukraine. This contributes to the country’s food security and ensures public health. 
• World Bank. In 2022, the World Bank approved a $130 million loan for Tunisia to address food security issues. This was part of an emergency response package with other donors, supporting short-term importation of wheat, barley and agricultural inputs for domestic grain production. This aimed to strengthen Tunisia’s responses to potential future food crises and provide assistance to modernize the food subsidy system.
• USAID. In 2023, USAID, alongside the World Bank, announced financing for the purchase of 25,000 metric tons of American durum wheat to help Tunisia weather multiple crises and ensure essential food supplies.

Moving Forward

Agricultural subsidies remain a critical tool in reducing food insecurity in Tunisia. The future of food security in the country potentially depends on the balance between the support for domestic production, management of import dependencies and the promotion of sustainable agricultural practices. By doing so, as well as creating climate-smart approaches, Tunisia could enhance food security and build a more resilient agricultural sector.

– Hannah Ravariere-Moakes

Hannah is based in London, UK and focuses on Politics for The Borgen Project.

Photo: Flickr