Azerbaijan increases subsidies for agricultural producers
By Aynur Jafarova
Azerbaijan's government has increased the volume of subsidies for agricultural producers.
The validity of subsidies is set for five years, Azerbaijan's official press reported on August 5.
The recent amendments to the rules of allocation of subsidies and grants from the state budget to the agricultural producers notes that 70 percent of the total cost of fertilizers purchased by physical and legal entities will be paid at the expense of subsidies.
Earlier this percentage was set at 50 percent.
The cost of purchase, which is subject to subsidies, is 80 manats. It earlier amounted to 50 manats. Also, the limitation of subsidizing of at most 300 kilograms of fertilizer is removed.
The volume of subsidies for the purchase of motor oil and fuel remains the same at 40 manats per hectare of cultivated area.
Azerbaijan, the post-Soviet country with excellent natural conditions and unique priorities, has been allocating subsidies to agricultural producers since 2007.
The Azerbaijani farmers are exempt from all taxes (excepting land tax) in accordance with the law on providing tax privileges to agricultural producers adopted on November 27, 2001.
Azerbaijan with a population of over 9.5 million people has allocated 20.15 million manats for farmers in the state budget of 2014.
The agricultural sector is important not only for increasing Azerbaijan's export potential, but also for restoring and protecting the country's food security.
Protecting the quality and price of food stuff produced in Azerbaijan and producing them in accordance with quality standards are among the top issues of the country's food security.
Azerbaijan has adopted serious measures, because ensuring food security is one of the country's strategic goals.
Within the "Azerbaijan-2020: Vision into the Future" concept, Azerbaijan is taking steps to ensure food security in the country, and one of the key elements of this concept is to eliminate dependence on food products imports.
The country has been able to achieve this goal over the past five years. Azerbaijan is expected to fully meet its demands through local production in the coming years.
The government's huge investment in the agricultural sector has left bright results. Currently, the import of certain agricultural products has decreased in Azerbaijan compared with the previous years.
Thus, Azerbaijan's ability to endure the population's food demands and provide them with domestically produced foods has increased.
Also, Azerbaijani President Ilham Aliyev issued a decree in mid-January 2014 on taking additional measures for improving food markets and agricultural products.
The decree noted that Azerbaijan will establish a network of specialized farmer stores and 'green' shops which will operate in Baku's districts and Azerbaijan's large cities on a permanent basis.
The establishment of such specialized farmer stores and 'green' shops in Azerbaijan is one of the main factors of food security and will allow the country to provide its population with organic and ecologically clean products.
The official exchange rate was 0.7843 AZN/USD on August 5.