The Irish Creamery Milk Suppliers' Association (ICMSA) has criticised the government's reduction in the cost of green diesel, describing the response to recent increase in costs as "penny-pinching".

Between a reduction in mineral oil tax (MOT) and a cut to the National Oil Reserves Agency (NORA) levy, the government confirmed a reduction in 5c/L on the cost of green diesel.

The decision forms part of measures taken by the government to reduce the cost of fuel, in light of the conflict in the Middle East and the spiralling cost of fuel as a result.

Green diesel has been particularly impacted.

The measures will take effect from midnight tonight (Tuesday, March 24) and will remain in effect until May 31.

The reduction is a long way off the reductions that have been confirmed for petrol and road diesel.

Denis Drennan, the ICMSA's president, said the cut in price for green diesel is "wholly inadequate" in terms of addressing "soaring farm inputs", including fuel and fertiliser, at a time when dairy and beef prices "are either below the cost of production or slumping fast".

Drennan said: "It is obvious that much more radical measures are required for primary food producers.

"Farmers are entering a perfect storm where the government seems unable or unwilling to address inflationary factors that are within its purview and are driving up the costs of producing food, while simultaneously the prices paid to farmers are falling stagnant," he added.

The ICMSA president claimed that an investigation is needed into why green diesel has risen in price at a "much faster pace" than ordinary diesel.

He also said that the issue of the Carbon Tax, which accounts for 17c/L out of the price of a litre of green diesel "can no longer be ignored and is going to have to be addressed".

"The relief available to farmers for the increase in Carbon Tax on farm diesel needs to be extended to agricultural contractors and the process badly needs to be simplified," Drennan said.

He added: "Farmers need decisive action and meaningful reductions in their costs and instead we are getting these minor and marginal penny-pinching measures".