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Grain import in Azerbaijan to be likely subjected to customs duties: minister

Business Materials 17 July 2009 15:24 (UTC +04:00)
Grain import in Azerbaijan to be likely subjected to customs duties: minister

Azerbaijan, Baku, July 17 / Trend , U.Ismayilova/

The Azerbaijani Agriculture Ministry offered the country's government to impose customs duties on the grain import, Agriculture Minister Ismat Abbasov told Trend on July 17.

"Imposing the import customs duties will enable to stimulate the local grain production," the minister said.

At present only VAT (18 percent) is imposed on the grain import, he said. A maximum rate of the import customs duties in Azerbaijan is about 15 percent, but the minister refused to publicize the offered rate for grain.

Abbasov said this offer has been coordinated with the ministries of economic development and finance, state customs committee and is under the Azerbaijani Cabinet of Ministers' discussions at the moment.

In 2009, Azerbaijan produced 1.6 million tons of bread-grain, while the country's annual need in bread-grain is 1.53 million tons. It is expected to harvest 2.2 million tons of bread-grain this year. Meanwhile, Azerbaijan imported 591,000 tons of bread-grain in January-June.

"It would be incorrect to suddenly stop the grain import from economic point of view, but Azerbaijan can fully cover its interior need in bread-grain, as the country does not need its import," Abbasov said.

The Azerbaijani government intends to fully refuse from the grain import by 2010, Abbasov said earlier.

Azerbaijan imports grain, basically, from Russia, Turkey and Kazakhstan. Azerbaijan's annual need in grain comprises three million tons and one million of which is imported. The country's need in bread-grain is about 1.53 million tons per year which a 129,640-tons monthly need. Grain per capita is 180 kilograms each month.  

By late December 2008 grain sowing area covered 880,000 hectares in a spring season and 603,000 hectares falls to bread-grain which enabled to increase grain production to 250,000-300,000 tons in 2009.

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