Privileges for Azerbaijan’s Agriculture to Remain Unchanged in 2009: Minister

Business Materials 5 November 2008 13:17 (UTC +04:00)

Azerbaijan, Baku, 5 November/ Trend , corr U. Ismayilova/ The Azerbaijani government plans to continue granting subsidies for agriculture in 2009 as well and to retain all privileges and subsidies for Azerbaijani farmers that they received in 2008, Ismat Abbasov, minister of agriculture of Azerbaijan said by telephone.

Two decrees were signed in 2007 on the development of agriculture. According to the January decree of the Azerbaijani President Ilham Aliyev Government Support for Agricultural Producers, following increasing prices of energy sources by the Tariff Council AZN 80mln was allocated from the state budget, AZN 56mln of which will be spent to buy combustive-lubricating materials and AZN 24mln to pay for 50% of fertilizers.

About AZN 40 is spent on each hectare of area and AZN 26 - for each 300kg of fertilizers which allows to cultivate about 900,000 ha of sown area.

In November 2007, the Cabinet of Ministers of Azerbaijan decreed to grant subsidies worth AZN 40 to the producers of wheat for every hectare of sown area. The decree aimed at encouraging wheat production, increasing interest of producers and meeting demand for bread due to domestic production.

In August 2008, AZN 25mln were allocated from the reserve fund for Agrolizing at the presidential decree to accomplish the above-mentioned goals. These funds will be spent to buy 50% of seeds of wheat and 70% of fertilizer.  

Official exchange rate for 5 November is 0.8078 AZN/USD

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