Azerbaijani Agricultural Ministry Consider Expedient Impose of GDP on Grain Import – Minister
Azerbaijan, Baku / Trend corr. I.Khalilova / The Azerbaijani Agricultural Minister does not see need in prolonging of term to abolish GDP on imported grains. The term of GDP on imported grains expires in July 2008, the Agricultural Minister Ismat Abbasov said on 11 December.
GDP was abolished on imported grains for one year term which enabled bread producers to purchase grain by 50% cheaper per each ton.
Grains should be imposed by tax as it stimulates local manufacturers to increase production volume, the Minister said.
Prices may to be stabilized as a result of increase of production in the country.
"Despite some rumours Azerbaijan has not been faced grain deficit. The grain reserve of Azerbaijan amount to 1mln ton by 1 January 2008, Abbasov said.
However, abolish of GDP caused favourable conditions for importers, who imported gains to Azerbaijan during increase in prices of grains in world markets.
Russia and Kazakhstan are currently the key grain importers to Azerbaijan.
Some 2mln tons of grain were grown in Azerbaijan. Around 127,000 tons of grain is used in Azerbaijan per month.
Azerbaijan's annual grain demand makes up 3mln tons of which 1mln tons are imported mainly from Russia, Kazakhstan and Ukraine.