Fertilizer and pesticide market fully liberalized in Azerbaijan
By Trend
Misunderstanding occurred in some issues because farmers are provided with subsidies through the Electronic Agricultural Information System (EKTIS) for the first time in Azerbaijan this year, Chairman of the Azerbaijani Agrarian Credit and Development Agency (AKIA) under the Azerbaijani Ministry of Agriculture Mirza Aliyev said.
Aliyev made the remark in Baku at the briefing dedicated to the instructions related to the issuance of subsidies, farm cards and sale of preferential fertilizers, Trend reports on March 10.
“Despite great raising awareness campaign, farmers still do not know about some rules,” the chairman added. “One of the main issues that confuse farmers is the liberalization of the supplier market. Although we, as farmers, create conditions for the registration of suppliers in Electronic Agricultural Information System, they must carry out their activities in the districts and promote it among farmers. We have posted a list of these suppliers and their contact numbers on our website, but besides this, they must improve logistics and relations with the farmers."
“However, the market of fertilizers and pesticides has been completely liberalized in the country,” Aliyev added.
“Azerbaijani farmers are not used to buying a card. As is known, in accordance with the rules, only 25 percent of the subsidiary funds may be cashed out,” the chairman said. “Cash and non-cash funds are separately visible on the farmer’s card balance. A farmer who wants to buy fertilizers may pay 70 percent of the price of the product by using non-cash funds on the card.”
“The remaining 30 percent must be paid in cash or non-cash form,” Aliyev said. “Until this year, in accordance with the existing rules for the sale of fertilizers, 70 percent of the price was paid directly to the state supplier. The farmer saw only 30 percent of the price he paid. Presently, these funds are transferred to the farmers in the form of subsidies."
The new rules for subsidizing the production of agricultural products have entered into force since the beginning of this year. In accordance with these rules, agricultural subsidies will be issued to farmers through the electronic agricultural information system.
The new mechanism related to agricultural support measures serves to increase accountability, transparency, ensure the efficient use of budgetary funds, as well as simplify the process of farmers' appeals and the provision of farmers with subsidies.
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