Azerbaijan allocates $60 mln in subsidies to farmers

Azerbaijan has allocated 63.2 million manats ($60.21 million) to farmers for purchasing fuel and motor oil for the equipment used in the cultivation of lands.

The relevant decision was taken on August 5 at a meeting of the state commission, Azerbaijan's Agriculture Ministry reported on August 8.

The subsidies were distributed among 372,234 farmers in 60 regions (cities) to cultivate around 1.264 million hectares land.

The relevant paperwork was submitted to the country's Finance Ministry, Kapital Bank, and the executive authorities of regions (cities).

The state commission also discussed providing 50 manats ($47.6) per hectare of cultivated area to farmers from the state budget and subsidizing 70 percent of the cost of fertilizers sold to farmers of Agroleasing Open Joint Stock Company and other legal entities and individuals.

Azerbaijan, a post-Soviet country with excellent natural conditions and unique priorities, has been allocating subsidies to agricultural producers since 2007.

Azerbaijani farmers are exempt from all taxes (excepting land tax) in accordance with the law on providing tax privileges to agricultural producers adopted on November 27, 2001.

The agricultural sector is important not only for increasing Azerbaijan's export potential, but also for restoring and protecting the country's food security. The country is expected to fully meet its demands through local production in the coming years.

The government's large-scale investment in the agricultural sector has left bright results. The import of certain agricultural products has decreased recently in Azerbaijan compared to previous years.

The production of agricultural goods increased by 7.3 percent in Azerbaijan in the first half of 2015, compared to the same period last year. The production of livestock increased by 2.6 percent, and crop production by 14 percent in the reported period.

Thus, Azerbaijan's ability to ensure the population's food demands and provide them with domestically produced foods have increased.

Also, Azerbaijani President Ilham Aliyev issued a decree in mid-January 2014 to take additional measures to improve food markets and agricultural products.

The decree noted that Azerbaijan would establish a network of specialized farmer stores and 'green' shops that will operate in Baku's districts and large cities in Azerbaijan on a permanent basis.

The establishment of such specialized farmer stores and 'green' shops in Azerbaijan is one of the main factors of food security and will allow the country to provide its population with organic and ecologically clean products.

The official exchange rate on August 7 was 1.0497 AZN/USD.