Azerbaijan, Baku, 29 February / Trend / Russia may prolong the term of increased tariffs on wheat and barley export from 30 April to 1 July 2008. The Agricultural Ministry of Russia has developed the proposals. Ministry will submit the document to Economic Development Ministry for consideration in the near future, Alexei Gordeyev, Russian Agricultural Minister stated.
Prolonging of the term of prohibitive tariffs would provide enough volume of wheat reserve in the internal market. The increased tariff on wheat export was introduced in Russia from 29 January 2008. The size of tariffs was raised from 10% from the custom cost- from € 22 per ton to 40% €105 per ton.
Azerbaijan cancelled VAT on wheat import to the country, due to the increase of wheat cost in Kazakhstan and Russia in 2007. This enabled the bread manufacturers to purchase wheat cheaper by $50.
In 2008, it is expected to increase wheat production to 2.5mln tons in Azerbaijan, as wheat sowing area were expanded by 130,000 hectares and made up 601,000 hectares.
Wheat import is broadcasted at the volume of 700,000 or 800,000 tons in 2008.
In 2007, about 2mln tons of wheat was produced in Azerbaijan. Azerbaijan's demand in wheat makes up 1.5mln ton for production purpose, and 3mln tons in total.