Azerbaijan, Baku / corr. Trend S.Babayeva / A decision of the Government to provide subsidies to grain producers in the amount of AZN 40 will be made possible through an unused portion of funds allocated out of the public budget, in order to compensate farmers' expenses in connection with an increase of energy prices and the sale of fertilizers at discounted prices, said Ismat Abbasov, the Azerbaijani Agriculture Minister, on 14 November.
According to Abbasov, AZN 80mln has been allocated out of the public budget for this purpose (AZN 56mln for energy resources and AZN 24mln for fertilizers), while AZN 31mln of this sum remained unused. This capital will be directed at supporting the grain production in the country.
A subsidy in the amount of AZN 40 will be given for each hectare sown. The Agriculture Ministry originally came out with an initiative to render assistance to the grain producers in the amount of AZN 30 for each sown hectare. "After discussions, the Government decided to establish it in the amount of AZN 40," Abbasov said.
This decision was made in order to stimulate grain production, increase financial interests among farmers, and cover the demand for bread and rolls through local production.
In accordance with the decision of the Government, the Agriculture Ministry is committed to develop a new means within three days to issue assistance through the budget funds to agriculture producers for the fuel and lubricants used in the cultivation process, and to coordinate it with the Ministries of Economic Development and Finance, and then to present it to the Cabinet of Ministers.
The Minister said that new rules have been developed and soon will be presented to the Government. The Finance Ministry and Kapital Bank received an appeal to ensure quick distribution of these funds among farmers.