Change in Export Policy of Kazakhstan may Cause Rise in Price of Bread in Azerbaijan: Expert May Rise Bread Price

Change in Export Policy of  Kazakhstan may Cause Rise in Price of Bread in Azerbaijan: Expert  May  Rise Bread Price

Azerbaijan, Baku, 16 April / Trend corr. U.Ismayilova / Eyyub Huseynov, head of Free Consumers Union of Azerbaijan, believes that the ban imposed on the grain export by Kazakhstan will lead to 15% increase in prices of bread till the harvest in Sep 2008.

"The reason for such vigorous affect of export on the prices is unfavorable conditions for agricultural activities in Azerbaijan," Huseynov stated.

According to Huseynov, after the decision of Tariff Council of Azerbaijan in Jan 2007, on increase of prices for energy carriers, one-third of farmers refused from cultivation which resulted in increase in prices of bread and bread products.

Since summer 2007, the increase in prices of bread has been observed in Azerbaijan. According to experts, increase in prices occurred, particularly, because of increase in prices of grains by exporting countries - Russia, Kazakhstan, Turkey and Ukraine, as well as low harvest.

The newly changed export policy of Kazakhstan will again affect the prices. Kazakhstan is the biggest grain exporter to Azerbaijan.

In August 2007, the new Bill came into force in Kazakhstan. As pre the Bill, grain exporting should pass the obligatory license.

By banning wheat export, Kazakhstan, the largest wheat producer in the Central Asia, is trying to protect its own domestic market on the background of price rise in wheat worldwide. Earlier, Kazakhstan planned to restrict wheat export from 1 March 2008, however the government decided to wait a little with this plan

Lack of grains in the markets led to significant increase in prices. This happened because of grain export envisages special customs or prohibition will be put on these goods. Argentina and Russia did follow this procedure. So, the countries consider delaying growth rate of prices in domestic markets. Drought in the north of China became on of the reasons for increasing in prices.

"The prices for bread had already increased double and its weight was decreased to 300gr or 500gr," Huseynov said.

The cost for one loaf of bread increased from AZN0.2 to AZN 0.3 since Aug 2007.

The yearly grain demand comprises of about 3mln tons, out of which 1mln is exported in Azerbaijan.

The ban by Kazakhstan, on the export of wheat until the new harvest in Sept 2008, is not a problem for Azerbaijan who imports wheat from this country, said Sabir Valiyev on 16 April, head of Department for Production and Processing of Crops and State Control on Food Reserves of the Ministry of Agriculture of Azerbaijan.

"At present, we have enough wheat reserves - 573,000 tons which can meet the demands for five months if necessary," he said.

According to Valiyev, the demand will be met by the home -produced wheat, in case the current wheat reserves in Azerbaijan gets exhausted. The harvest of grain-crops in the country will begin in June and the forecast for harvest for 2008 is placed at 2.3-2.4mln tons

The representative of Ministry of Agriculture said that, if there is a need, the government can began the talks on purchase of wheat with other countries - Ukraine and Canada.

Heydar Babayev, the minister of economic development of Azerbaijan said on 15 April that the Azerbaijan government is obliged to increase the volume of subsides for agriculture to secure food security. The new mechanism of financing will be more effective than the current one.

According to him, it can be carried out by means of additional tax breaks. From 2009, the moratoriums on the tax payments carried by the agricultural products producers are planed to be prolonged by exempting them from all the taxes (excluding land tax). According to the minister, the extension of exemption from VAT on wheat import is also the issue of the day (VAT was canceled for a year). In addition, there can be other tax breaks on the production of cereals.

"We are going to consider the introduction of more complicated forms of subsidies and new mechanism of compensation of fuel purchases in detail," minister said.

In this regard he believes that measures must be taken to establish Wheat Fund, as lot of farms has difficulties in purchasing seeds.

The correspondent can be contacted at [email protected]

Despite events in Armenia, it's necessary to continue implementation of agreements on Nagorno-Karabakh -  Russian official
Despite events in Armenia, it's necessary to continue implementation of agreements on Nagorno-Karabakh - Russian official
Supplies of 'Iskander' missiles to Armenia must be stopped – Russian expert
Supplies of 'Iskander' missiles to Armenia must be stopped – Russian expert
Military coup attempt in Armenia - PM inviting supporters to Republic Square
Military coup attempt in Armenia - PM inviting supporters to Republic Square
Loading Bars
Armenia has always supported terrorism - MP
EU supports JCPOA commitments
Azerbaijan focused on rehabilitation, reconstruction of liberated lands - MP
Assistant to Azerbaijan's president talks country's success in int'l information field
Baku Stock Exchange to auction off Azerbaijani Central Bank's short-term notes
Azerbaijan records growth of GDP in non-oil sector over Jan. 2021
Azerbaijan discloses volume of fruits and vegetables exported since early 2021
Azerbaijan would like to bring new ideas, proposals to region with help of OSCE - MP
Uzbekistan, Tajikistan talk opening ground checkpoints
All Armenian prisoners of war have been returned to Armenia - Azerbaijani MP
President Aliyev makes phone call to President Erdogan
Number of electronic registrations of businesses in Azerbaijan growing
TikTok is more affordable with Azercell!
Etsy not thinking of accepting bitcoin right now
Kazakhstan, Azerbaijan reach agreement on drilling wells with Satti jack-up rig
Only close cooperation can help demilitarize South Caucasus region - Azerbaijani MP
Azerbaijan Caspian Shipping CJSC receives int'l certificate in use of specialized software
FAO outlines strategy for healthy and productive livestock in Europe, Central Asia
Azerbaijan's January 2021 revenues from exports to US increase over fourfold
Registration of new enterprises down in Georgia
We have created new realities, Armenia and other countries must reckon with it - President Aliyev
Azerbaijan's AzerGold, BUZ Consulting ink contract to acquire Microsoft license
Precious metal prices down in Azerbaijan
Azerbaijan's State Employment Agency opens tender on e-platform development
Azerbaijan holds minute of silence to honor Khojaly genocide victims
Turkmenistan's Turkmenhimiya extends tender for turnkey construction of plants
Putin discusses current situation in Karabakh with Russian Security Council members
Azerbaijan records decline in total assets of local banks for Jan.2021
CNPC in Turkmenistan opens tender for purchase of tubing, spare parts
TPP in Uzbekistan announces tender for construction of combined cycle unit
Iran launches telecommunication projects in Isfahan Province
Azerbaijani witnesses to Khojaly genocide recount tragic events - Trend TV (VIDEO)
Turkmenistan conducts exploration, drilling operations at fields in Caspian region
Portugal's 'Original Features' shoots film about Khojaly genocide (VIDEO)
China will extend tariff exemptions for 65 U.S. products
Azerbaijan reports 180 more COVID-19 recoveries
Russian state official stresses need to reveal out causes and culprits of Khojaly tragedy
Uzbekistan to increase number of facilities recording water based on 'smart water’ technology
Uzbekistan’s 2020 volume of foreign direct investments down
Nothing must divert involved sides from main task in Nagorno-Karabakh region - Russian MFA
Kazakhstan reports increase in agriculture yield year-on-year
Iran's export to Spain declines
EU overseeing several projects to reinforce renewable energy use in Georgia
Azerbaijani population honoring memory of victims of Khojaly genocide (PHOTO)
Despite events in Armenia, it's necessary to continue implementation of agreements on Nagorno-Karabakh - Russian official
Azerbaijan jointly with Turkey to improve gaming industry - Game Tech
Pfizer COVID-19 vaccine reduces transmission after one dose
India's April-Jan fiscal deficit hits 66.8% of full-year target
Azerbaijan discloses amount of compensations paid to depositors of closed banks
Turkmenistan, Russia considering co-op in construction, electrification of railways
EBRD reveals info on investments in Azerbaijani projects
Turkey to ask Russia for discount on natural gas imports
European Council President Charles Michel to visit Georgia
Spain lowers import of Azerbaijani crude oil
WB, BSEC and Georgia start consultations on 'blueing the Black Sea'
Azerbaijani ombudsman makes statement on 29th anniversary of Khojaly genocide (VIDEO)
There will be good opportunity for cooperation between our relevant agencies and international companies - President Aliyev
Azerbaijan issues data on 2020 oil export to Greece
France raises imports of Turkish made cars
Turkey records increase in car exports to Georgia
Turkey discloses foreign trade turnover in Jan. 2021
We are preparing master plan for reconstruction of each city - President of Azerbaijan
Process of modernization of Azerbaijani cities continues - President Aliyev
Armenia ruined almost all religious monuments in Azerbaijani de-occupied lands - State Committee
Turkish president reveres memory of Azerbaijani brothers and sisters ruthlessly murdered in Khojaly
Memory of Khojaly genocide to live forever, says Azerbaijan's ombudsperson
Azerbaijan sees decline in crude oil exports to India
Azerbaijan nearly doubles oil supplies to Ukraine
Turkey discloses number of ships received at Antalya port in Jan.2021
Turkmen Airlines to receive new Boeing 777-200LR aircraft
Georgian Oil and Gas Corporation reveals amount of oil extracted in country
Turkmenistan extends suspension of flights
We were preparing for war all these years, we never concealed that - President of Azerbaijan
Pakistani Airlines requests permission to operate flights to Uzbekistan
According to our information, about 6,000-7,000 invaders were killed - President of Azerbaijan
Armenia has never been in such miserable state - President of Azerbaijan
State of Azerbaijan and I as President will always be with members of martyrs` families and war disabled - President Aliyev
Starting from July 17 until last day of war, several planes brought free weapons to Armenia every day - President Aliyev
Blood of victims of Khojaly was also avenged in second Karabakh war - President Aliyev
Current, former leaders of Armenia to be blamed for country’s current tough situation - Azerbaijani President
President warns about 'revanchism sentiments' regarding Azerbaijan's lands
Did Armenia buy those Iskander missiles for money? It got them for free - President Aliyev
Bangladesh PM’s younger sister gets first shot of Covid-19 vaccine
Thai-Sikh girl wins Bangkok award, dreams of Bollywood
We have shown that people of Azerbaijan are victorious - President Aliyev
Relatives of those in Armenia killed in war didn't even receive a hut, let alone a house - President Aliyev
Families of our children killed in Karabakh wars will be given apartments - President Aliyev
Eurasia Drilling Company reduces well drilling y-o-y
There was not single deserter in Azerbaijani army - President Aliyev
Surrender of Shusha, Lachin and Kalbajar during Musavat government was great act of betrayal - president
Uzbekinvest eyes expanding volume of insurance, reinsurance services
Baku Higher Oil School honors memory of victims of Khojaly genocide (PHOTO)
SOCAR’s Kulevi terminal details maintenance strategy
President Ilham Aliyev makes Facebook post on Khojaly genocide (PHOTO)
CBI governor expects Expediency Council to approve Palermo bill
Nagorno-Karabakh conflict ended, Azerbaijan resolved this issue - President Aliyev
Perpetrators of Khojaly genocide must be punished - Turkish ambassador
Prices for Azerbaijani oil continue to rise
Azerbaijani currency rates for Feb. 26
New Ambassador of Turkmenistan accredited in Kazakhstan
All news