The new subsidy approved by the Council of Ministers is designed to stimulate the renovation and expansion of Timor-Leste’s coffee plantation areas.

“Bearing in mind the importance of agriculture, namely coffee growing, for improving the living conditions of the Timorese and for the country's economic development, as well as the importance of supporting the production and promotion of high-quality organic coffee and to improve coffee production through the rehabilitation of coffee plantations, the Government decides to establish this support programme,” the statement said.

This Decree-Law project aims to stimulate the renewal of coffee plantations, expand coffee plantation areas, increase annual coffee production and increase farmers' incomes .

Support to coffee farmers includes a US$ 340 subsidy for each hectare of renewed or newly planted coffee plantations and subsidy of US$ 0.21 for each coffee tree planted.

Some 200,000 households in Timor-Leste are reliant on coffee production for their means of income, according to government statistics.