The head of AlgarOranje thinks that bringing in zero VAT "is a correct measure", but warns that "people cannot expect that this measure will stop a possible price increase".

The largest Portuguese association of citrus fruit operators foresees an increase in the price of oranges in the coming months, due to the drop in production of around 50 percent and despite the reduction to 0 percent of the VAT applied to this fruit. “With regard to oranges, it is almost guaranteed, that prices will increase, because production will be very low, a drop of about 50 percent, and in this case prices will rise”, said the president of the Association of Algarve Citrus Operators (AlgarOrange), José Oliveira.

Oliveira insisted that “this 6 percent reduction of the products that make up the basket is one thing, another thing is the functioning market”. “In the same way that last year there was a large production and prices were low, […] with little product, the tendency will be, naturally, for prices to rise”, explained José Oliveira.

For the president of AlgarOrange, “normally when there is overproduction, in the following years there is a decrease in production”, although weather conditions also influence prices: “This is normal over the years”, he added.