Azerbaijan, Baku, Feb. 20 / Trend, A. Akhundov /
The second edition of the draft law "On Agricultural Cooperative" allows for the creation of cooperative markets for selling the products of agricultural cooperatives, according to the Milli Majlis (Parliament) of Azerbaijan.
The draft law passed its first reading in April 2011, and is ready for the second reading. It will probably be considered by the Parliament of Azerbaijan at this session.
"The purpose of these markets is the involvement of the manufacturer not only in the production, but also in processing and sales, so that they can derive benefits themselves, not through intermediaries," the parliament said.
Under the draft law, executive authorities and municipalities will be responsible for providing land for the construction of cooperative markets.
"In addition, executive authorities and municipalities should assist in the logistical support of markets, and allocate some funds to these cooperatives participating in the division of seats in markets" according to the parliament.
Depending on the mode of union of participants within the draft law "On Agricultural Cooperation" agricultural cooperative relationships are formed in horizontal and vertical directions.
Horizontal agricultural cooperation involves the unification of participants at the production stage.
This stage provides for the unification of land and other assets, as well as the establishment of a production cooperative for the production of agricultural products. Vertical agricultural cooperation allows for unification within the cooperatives enterprise of various stages of agricultural production (processing, sale, service, etc.).