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By Nigar Abbasova

Imposing taxes on the certain number of imported goods is essential for the protection of domestic market and prevention of “surplus of supply”, Azerbaijan`s Minister of Agriculture Heydar Asadov said. The minister made the remark while addressing the meeting of the Cabinet of Ministers chaired by President Ilham Aliyev and dedicated to the results of socioeconomic development in first half of 2016 and objectives for the future.

Worldwide, the demand for bread and coarse grain is expected to reach 3 billion tons by 2050 as compared to the current rate of 2.1 billion tons, while demand for meat products will increase from 200 million tons up to 470 million tons, according to the Food and Agriculture Organization of the United Nations (FAO).

“Increasing demand, as well as growth rate of population, which now exceeds 100,000 men a year in our country, necessitates paying constant attention to the stable provision of food products," he emphasized.

Asadov stressed that food provision of the population gains a special attention on the background of diminished areas of land plots which reduced by roughy 200 hectares of the entire sowing area due to the Armenian occupation, as well as implementation of large-scale projects and development of the road infrastructure.

Asadov also emphasized that the difference between the sale price of the agricultural products at places and the final sale price on the consumer market has decreased by 1-2 times through the upgrade of the market infrastructure.

He mentioned that certain changes in the legislature made over the past two years have boosted economic activity in agriculture, and promoted the return of many people to the countryside.

The minister said that the production growth in agriculture is forecast to reach approximately 6 percent in the country.

“The forecast figure was 7 percent in the first half of the year, whilst constant rain lasting over 25 days delayed the sowing process for 15 days. Major breakthrough was fixed in July when the production growth amounted to 3.1 percent, covering almost all major types of the agricultural produce.”

Asadov said the World Bank expects the country's agriculture growth to make up 4.2 percent in 2016, and the 4 percent in 2017 and 2018. “Azerbaijan is expected to become one of the leading countries in the East and the Central European region in this regard,” he added.

The production of grain in the country is forecast to exceed 3 million tons. “Measures taken to promote export, including the steps to eliminate obstacles for exports, have considerably increased the export of agricultural products.”

The growth amounted to 27.5 percent in first half of 2016, including 13.1 and 33.1 percent growth in the export of fruit and vegetables respectively. Asadov mentioned that about 7.4 percent of tomatoes in the Russian market fall to a share of Azerbaijan while the figure was at the level of 1 percent in the last year.

The minister said that the country has also started to export beans, rice, barley, dried fruit, as well as meat and dairy products.

“We have also expanded export geography. Alongside with the Russian market we export to Iran, United Arab Emirates, Turkey, Irak and Turkmenistan,” he added. The growth of the domestic production considerably decreased import of the animal produce.

“The imports of meat and meat products have decreased by 2.8 percent, while the decrease in the milk and diary products amounted to 15.7 percent, the import of big cattle has decreased by 74.5 percent while the decrease in light beasts was 94.2 percent."

“Regardless devaluation of the national currency this year, the retail prices for meat has decreased by 20 percent in manat terms on the domestic market, which is considered to be one of the main accomplishments,” he said.

Asadov stressed that the country expects to output more than 100,000 tons of harvest in 2016, which is by 3 times more as compared to 2015.

He noted that the sown area for cotton is expected to cover 100,000-120,000 hectares. That will increase the cotton production to 250,000 tons.

Development of non-oil sector such as agriculture remains a top priority for the country. The government supports the development of agriculture at the state level, ensures all necessary brand-new equipment, implements various agricultural projects in an effort to bolster domestic production and expand the range of the goods to enter the foreign markets.

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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova

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