Subsidies for Azerbaijani Agrarian Sector to be Increased

Business Materials 23 February 2008 11:35 (UTC +04:00)

Azerbaijan, Baku, 23 February / Trend corr. I.Khalilova / The Azerbaijani Agriculture Ministry proposed to increase the sum of subsidies for agrarian sector approximately to AZN100,000mln, Sabir Valiyev, the head of the Plant growing and Seed-growing department, stated. The state budget allocated AZN 80mln for agrarian sector for 2008. The funds will be paid after its ratifying by the Cabinet of Ministers. The change of the subsidy mechanism depends on increase of its size per each sowing area, from AZN 40 to 50%. The cause for that was increase of seed production by 50% compared to 2007.

The quota on cereals made up 8,000 tons in 2007, the index will be increased to 16,000 tons in 2008.

"Farmers appealed to allocate additional funds due to increase of seed production more than 50%," Valiyev said.

In 2007, seed production made up 100,000 or 200,000 tons. The index is expected to exceed 1mln ton. According to Valiyev, the key attention will be focused on increase the production of vegetable seeds.

Valiyev believes that favourable weather conditions caused increase of agricultural production, particularly, cereals. The sowing areas will be increased by 130,000 hectares and will make up 601,000 hectares. Totally, sowing areas were increased from 734,000 to 828,000 hectares.

In 2007, Azerbaijani State Budget allocated subsidies in amount of AZN 68.9mln. About 596,806 individuals and 12 juridical entities were granted privileged sum to purchase fuel, engine oil and chemical fertilizers.

The state Kapital Bank was elected the agent, which will allocate subsidy. The new mechanism of financial aid to agricultural manufacturers was introduced in 2007.