Azerbaijan likely to change mechanism of subsidizing agriculture

Azerbaijan, Baku Nov. 17 / corr Trend A.Axundov /

The Azerbaijani government should continue supporting agricultural sector.

Arif Rahimzadeh, head of the parliamentary committee on regional affairs made this statement I in a Thursday meeting of the parliamentary committees on culture, science and education, legal policy and state building, regional issues, human rights, international affairs and interparliamentary relations, dedicated to discussion of the state budget for 2012.

"In addition to the existing ones new forms of assistance to the agricultural sector of the country must be found," Rahimzadeh said. "It is time to go to the practice of granting privileges and subsidies in accordance with the result of work and not with implementation of certain operations. We are given subsidies per hectare, but we don't know if there would be any results."

Subsidies for the purchase of motor oil and fuel in the amount of 40 manat per hectare of cultivated area are issued in accordance with the presidential decree on state support to agricultural producers.

According to Rahimzadeh, the objects of land reclamation should be paid increased attention to develop infrastructure in the agricultural sector

"Flow of people from agricultural regions to the capital will continue in future. To prevent it we should think about the creation of new jobs in the regions," Rahimzadeh said.

Rahimzadeh believes that funding for municipalities should also be increased.

"Despite a 50-percent growth of state budget income in 2012 compared to 2008, the expenses for the municipalities in the next year will remain at the level of 2008 public budget - 3.5 million manats," Rahimzadeh said.

Official exchange rate for Nov. 17 is 0.7865 AZN/USD.