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Country exports foodstuff worth almost 55M manats

27 December 2017 14:56 (UTC+04:00)
Country exports foodstuff worth almost 55M manats

By Sara Israfilbayova

Procurement and Supply of Food Products OJSC exported products worth 54.8 million manats ($33.998 million) in 11 months of 2017.

The article of Abulfat Gojayev, chairman of the company’s Management Board, published by Azerbaijan's official Respublika newspaper on December 27 says that 43,400 tons of agricultural products were exported during the period.

Enterprises, financed by the state budget, were provided with food products worth 85.5 million manats in 11 months of 2017.

Most of the products were purchased from local producers, and there are 395 farmers and 276 companies among them, which means bringing a large amount of financial resources into their turnover, noted Gojayev.

The article says that the company also started paying advances from April 2017.

“We have received 309 appeals from goods producers so far. As a result of monitoring of appeals and verification of documents, more than 3.38 million manats of advance payment was given to 132 economic entities,” says the article.

In order to stimulate the production and processing of agricultural products, to ensure the development of agricultural producers, to further improve the quality of food products, to ensure the rational use of public funds, to create the soil for improving the social well-being of the population engaged in agriculture in the regions was established the Open Joint Stock Company “Procurement and Supply of Food Products”.

President Ilham Aliyev signed an order establishing the company in April 2016.

The main goal of the Company is to purchase food products from producers and sellers of the product, to harvest and transfer them to procurement organizations.

Over the past period, the company has established structural units in 12 regions and strongholds in 38 regions of the country. With purchasers financed from the state budget, 1,925 contracts were concluded.

One of the main tasks of Azerbaijan is to eliminate the dependence of the economy on the oil industry and ensure the development of the economy in rural areas. Being the third after the oil and construction industries, agriculture plays the main role in reducing the unemployment rate in the country.

The fertile lands, abundance of water and climatic diversity create favorable foundation for ever-strengthening agro-sector.

Azerbaijan has 4.8 million hectares of agricultural land, which comprises over 50 percent of its total territory, of which39.6 percent is arable. Meanwhile, the food-processing sector constitutes an important component of the national economy and accounts for over 38 percent of total manufacturing industry.

Agricultural producers are exempted from paying all taxes (except tax for land), in accordance with the Law “On granting tax benefits to producers of agricultural products,” adopted on November, 2001.

Moreover, since 2007, the state has been offering preferences for agricultural producers and entrepreneurs involved in agricultural sector, in order to provide comprehensive support to producers, which helps to create competitive environment.

Over the last five years the growth in the number of employed in the processing industry was 9.3, and in agriculture 2.5 percent. Over 1 million new work places were created under the Regional Economic Development Programs, according to the State Statistical Committee.

By implementation of the Strategic RoadMmap, during the period from 2016 to 2020, it is expected to fulfill 9 strategic goals to create an enabling environment in terms of the formation of a sector for the production and processing of competitive agricultural products in the country, guided by the principles of sustainable development.

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