MP: Azerbaijani gov't should support establishment of agricultural cooperatives

Azerbaijan, Baku, May 9 / Trend U. Ismayilova /

About 90-95 percent of lands do not have effective conditions for agricultural production in Azerbaijan, MP Arif Rahimzade said during the conference "Heydar Aliyev and Azerbaijani model of development".

"Today, there are only a few farms with an area of 200-300 hectares, which were created as a result of expansion of lands, lease or purchase of additional lands," Rahimzadeh said.

He said that many farmers do not use modern technologies to develop their farms.

"This problem can be solved with the creation of agricultural cooperatives, which would protect the rights of farmers. This method proved itself in the world," Rahimzadeh said.

It is planned to discuss the bill "Agricultural cooperation" to develop agricultural cooperatives in the country and restore the system of cooperatives.

Rahimzade considers that the establishment of cooperatives will solve problems between producers and sellers of agricultural products on the equitable distribution of income. He said that the agricultural infrastructure should be improved for the development of agrarian sector. Productivity should be increased.

"The government should also support the activity of cooperatives through granting of grants and use of other preferential tools. Moreover, recommendations and proposals for the development of cooperation should be developed, Rahimzadeh said.

In his view, a decrease in import of agricultural products, protection of the domestic market must be a new approach in the development of Azerbaijani agrarian sector.

The Azerbaijani government has used a system of subsidies to agricultural sector since 2007. Subsidies are granted for the purchase of fuel and lubricants, fertilizers. They are also given to farmers growing wheat.

State support for Azerbaijani agriculture is planned to the amount of 700 million manat this year. These costs include both the direct and indirect costs of the state to finance the agricultural sector.

This year, about 35 million manat will be allocated for JSC "Agrolizing". About 48 percent of the funds worth $ 44 million manat allocated this year to the National Fund for Entrepreneurship Support is envisaged for the production and processing of agricultural products.

This year, the amount of direct subsidies to the agricultural sector amount to 115 million manat.

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