Agricultural subsidies become more targeted

10 June 2016 16:43 (UTC+04:00)

By Nigar Abbasova

Azerbaijan’s Cabinet of Ministers has approved certain changes to the order of rendering a state support to manufacturers of agricultural goods. The changes also refer to the rules of sale of mineral fertilizers and herbicides to the manufacturers of agro products.

The government has increased the maximum rate of subsidies applied in reference to the sale of mineral fertilizers and biohumus from 80 to 100 manats ($ 53 – $66). Calculation is made for each hectare of the sown area.

Farmers will be able to take advantage of benefits worth 10 manats ($ 6.62) while purchasing pesticides. Previously the benefits were envisaged only for the sale of herbicides. Pesticides stand for the group of substances which are aimed at the provision of pest control and struggle against plant diseases.

Benefits will also be applied in reference to cotton and tobacco sowing. Benefits stipulated for the purchase of fuel and engine oil, which are used during the process of cultivation of sawn area, amount to 50 manats ($ 33) while the rate for wheat, rice and tobacco sowing is 40 manats ($ 26.51) per hectare.

Agricultural sector in Azerbaijan is considered to be central in an effort to diversify the national economy. The government supports the development of agriculture, ensures purchase of all necessary brand-new equipment, implements various agricultural projects aimed at increasing volume of domestic production and expanding range of the goods exported to foreign market.

The country continuously takes steps for the provision of manufacturers of export-oriented products with additional privileges. The allocation of benefits to the sphere of agriculture has started in 2007. Agriculture Ministry also created regional agencies on subsidy allocation to ensure efficiency and transparency in grant allocation.

Manufacturers of agricultural products in the country are exempt from all taxes (except land tax) in accordance with the law on the allocation of tax benefits to agricultural products manufacturers approved on November 27, 2001.


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

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