Azernews.Az

Azerbaijan will not face a grain shortage in 2008 despite rising prices in world markets spurred by inclement weather conditions, officials said.
"On the contrary, the reserves of grain are to increase next year," Minister of Agriculture Ismat Abbasov told the press Tuesday.
Azerbaijan's annual demand is 3m tons, of which a third is imported from Russia and Kazakhstan.
Abbasov said that under a presidential decree on state support to agricultural producers, additional funds have been allocated to entrepreneurs working in the field. The measure has allowed to plough extra 200,000 hectares of land, of which three fourths have already been used to sow wheat.
"This means that we will be able to harvest between 250,000 and 300,000 tons of additional grain next year," the minister said.
80 million manats ($95 million) were allocated from the state budget for the development of agriculture according to a decree enacted by the head of state in January. 49 million manats ($58 million) of the amount had been spent. The government decided to use the remaining portion to allocate 40 manats ($47) per hectare of arable land to wheat producers.
Abbasov said the Agroleasing open joint-stock company established in 2004 is successfully providing agricultural services in Azerbaijani regions.
"A shortage of equipment was not observed in any district this year. Besides, the company is delivering fertilizers to the country, which is one of the most important issues for increasing fertility of land," he said.
Abbasov said the revocation in July of the Value Added Tax on grain for a year was a tremendous opportunity for both importers and local producers.
Global grain reserves have dwindled to 107 million tons, driving up prices in exporting states. Prices have climbed steadily for several consecutive months, reaching $350 per ton of wheat in exchanges around the world.
Prices for bread in Azerbaijan have been on the rise since August. The price per loaf in local grocery stores has increased 50% to 30 Gapiks (35 cents).
Officials say that bread prices are unaffected by internal factors, and a sufficient amount of grain has already been harvested to meet domestic demand. 2.3m tons of the product were produced this year.