The decision, announced by Agriculture Minister Luis Planas Puchades on Friday, will see around 188,000 tonnes of olive oil removed from the market.
Under EU and Spanish rules, such measures are allowed if total supply exceeds 120 percent of the average for the past six seasons.
The large harvest, combined with existing stocks, pushed extra virgin olive oil prices to a five-year low at the end of October.
After two years of severe drought in 2022 and 2023, favourable weather and plenty of rain have led to a strong recovery. This year’s production is expected to increase by 23 percent to 1.6 million tonnes - the country’s fourth-largest harvest ever.
Spain accounts for a third of the world’s olive oil production.
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