Azerbaijan to increase subsidies to agriculture in 2012

Business Materials 7 August 2012 19:40 (UTC +04:00)

Azerbaijan, Baku, Aug.7 /Trend A.Akhundov/

Azerbaijan will increase the total amount of subsidies for the purchase of motor oil and fuel for agricultural producers to 3.964 million manat in 2012, Minister of Agriculture of Azerbaijan Ismet Abasov said at a press conference on Tuesday.

"Some 56.441 million manat will be allocated from the state budget for the purchase of motor oil and fuel for Azerbaijani agricultural producers for the cultivation of perennial crops and cultivation of 1.418 million hectares of sown area in 2012, which is 3.964 million manat higher compared to the same period last year. This decision was taken at a meeting of the relevant state commission today," Abasov said.

He noted that the Ministry of Agriculture will apply to the Ministry of Finance to transfer the necessary funds from the state budget to authorized bank - Kapital Bank with their subsequent delivery to agricultural producers.

"In addition, the state budget will allocate 2.284 million manat to ensure the public sale of fertilizers on favorable terms in 2012. The government plans to sell 11.9 thousand tons of fertilizer with a 50-percent discount in 2012," Abasov said.

He noted that, subsidizing of the agricultural sector is yielding positive results.

"Agricultural production in the country increased by 10.4 percent in 2012, resulting in a price decrease for it by 0.2 percent," Abasov said.

Farmers in Azerbaijan receive subsidies from the state budget since 2007.

Subsidies for the purchase of motor oil and fuel in the amount of 40 manat for each hectare of cultivated area are issued in accordance with the decree of Azerbaijani President to provide state support to agricultural producers.

Farmers are exempt from all taxes (except for land) in Azerbaijan in accordance with the law On providing tax incentives to producers of agricultural products, adopted on November 27, 2001.

Official exchange rate on Aug.7 is 0.7856 AZN/USD