The government is putting together a plan to flavor olive oil and support exports
A new government plan to control the prices of olive oil domestically and encourage domestic consumption while raising its inflation rate and expanding international export ports.
The government has announced a plan at the Government House in Tunis to secure the olive oil season, support the production and marketing system to control prices locally and encourage domestic consumption. This came during a narrow cabinet chaired by Prime Minister Sara Zaafrani Zenzri, dedicated to monitoring the sector's actions and reducing volatility in international markets.
The proposed measures include commissioning the National Oil Council to promote quantities of canned oil on the local market at prices that take into account production costs and consumer purchasing power, as well as encouraging hotel and restaurant establishments to use Tunisian branded canned oil. The plan also includes providing logistical support by increasing the contribution of the Export Promotion Fund to cover the cost of shipping from 50 percent to 60 percent, to target new international markets and overcome the burdens of freight costs.
The domestic market had previously seen the implementation of a national pump program through the National Oil Court of nearly 7.5 million litres of premium crude olive oil at a differential price set at 15 dinars per liter, with the aim of supporting household consumption and raising the annual rate of individual consumption not to exceed 3 litres. The production volume in the 2025-2026 agricultural season was about 500 thousand tonnes, of which 399 thousand tonnes were exported until late September 2026, including 60 thousand tonnes of canned oil and 58 thousand tonns of bio-oil.
The regulation of trade and export activities falls within the legal framework defined by Law No. 12 of 1994 on foreign trade regulation and clauses published in the Official Gazette dated 22 December 2023. The system faces ongoing efforts to overcome the problems of production costs and fluctuations in global markets by encouraging the added value of domestic cooking processes.
The government intends in its next step to include a private account under the Finance Bill for 2027 named Olive Oil System Account to finance storage operations. It is also aiming to create a 100 million dinar financing line between 2027 and 2030 with the aim of supporting smallholder farmers and those involved in the system.