Abolition of grain import exemption from VAT not to cause increase in prices in Azerbaijan: minister

Azerbaijan, Baku, May 7 / Trend , U.Ismayilova/

Abolition of exemption of grain import from VAT, which was introduced in 2007 with prolongation for one year term, will not increase flour price, Agriculture Minister Ismat Absov said. The exemption was introduced initially in July 2007. This abled bread manufacturer to purchase grain by $50 cheaper.

"The prices will not increase and no deficit will be observed in Azerbaijan," he said.

The grain production will reach 2.1 million tons this year. This is a record volume.

Azerbaijan's annual grain demand is 1.5 million ton.