BAKU, Azerbaijan, Dec.30
By Fidan Babayeva – Trend:
Trend News Agency presents an overview of the most important events of 2020 in the agricultural sector of Azerbaijan.
Changes to the mechanism for the provision of agricultural subsidies
At the beginning of the year, the Cabinet of Ministers of Azerbaijan spoke on the decision to improve the process of agricultural subsidies. Resolution #518 ensures the fulfillment of instructions provided for by the relevant decree of the President of Azerbaijan, in accordance with which a new, more stable and long-term mechanism for issuing plastic cards to farmers is being formed.
Prior to that, three-year plastic cards, on which subsidies were transferred, were issued only to farmers engaged in crop production, including tobacco and cotton growing, and livestock breeders did not receive such cards. The new uniform rules provide for the issuance of three-year plastic cards and them.
Also, for their registration, unlike the previous practice, instead of two instances - the Ministry of Finance and the Ministry of Agriculture, farmers only need to apply to the Agrarian Credit and Development Agency under the Ministry of Agriculture.
Implementation of mobile agricultural services
In March, the Ministry of Agriculture of Azerbaijan for the first time began to provide the population of the regions with mobile services in minibuses equipped with the latest technology.
The first agrarian mobile service was organized in the village of Talistan, Ismayilli district, thanks to which 200 farmers registered in the Electronic Agricultural Information System (EKTIS) issued land and sowing documents and received "farmers cards".
Creation of a project group to develop a financing mechanism for agriculture
A project group was created in Azerbaijan with the joint participation of the Central Bank of Azerbaijan (CBA) and the Ministry of Agriculture to develop a mechanism for financing agriculture, agricultural land and farmers.
An agreement was reached between the leadership of the CBA and the heads of the Ministry of Agriculture, including the Agrarian Credit and Development Agency, as well as the National Confederation of Entrepreneurial Organizations and the Azerbaijan Banks Association, an agreement was reached between the country's financial regulator and the Ministry to create a project group.
Amendments to the ‘Regulations on the Agrarian Credit and Development Agency of Azerbaijan under the Ministry of Agriculture’
On April 8, 2020, President of Azerbaijan Ilham Aliyev signed a decree on amendments to the ‘Regulation on the Agrarian Credit and Development Agency of Azerbaijan under the Ministry of Agriculture’, approved by the decree on July 23, 2015.
The ministry began to issue partial guarantees for risks on microcredits of individuals and legal entities, family farms, obtained through authorized credit institutions.
Order on allocation of funds to improve provision of microcredits to agricultural producers in the context of COVID-19 and beyond
On April 14, 2020, Azerbaijani President Ilham Aliyev signed an order on the allocation of funds to improve the provision of microcredits to agricultural producers in the context of the coronavirus pandemic and in the subsequent period.
According to the order, for the issuance of non-guaranteed loans in the agricultural sector in order to meet the needs of agricultural producers for financial resources in the context of the coronavirus pandemic and in the subsequent period, 30 million manat ($17.6 million) are allocated from the Reserve Fund of the President of Azerbaijan in the 2020 state budget to the Agrarian Credit and Development Agency under the Ministry of Agriculture.
Amendments to the ‘Rules for the distribution of land by categories and their transfer from one category to another’
The Cabinet of Ministers of Azerbaijan has made changes to the ‘Rules for the distribution of land by category and their transfer from one category to another.’ The corresponding decision was signed by Prime Minister Ali Asadov.
According to the amendments, if the decision on the distribution of land by categories and their transfer from one category to another is related to agricultural land plots, then the relevant information on this matter will be included in the e-government portal information system in accordance with the Regulation on the Electronic Agricultural Information System, approved by the decree of the President of Azerbaijan No. 897 dated December 23, 2019.
‘Accelerating effective and sustainable development in the field of hazelnut growing in Azerbaijan’ project
Azerbaijan has launched implementation of the ‘Accelerating effective and sustainable development in the field of hazelnut growing in Azerbaijan’ project within the framework of the Partnership Program with the Food and Agriculture Organization (FAO) of the United Nations.
The main goal of the project is to improve the efficiency of hazelnut production and ensure sustainable development of the industry, which will lead to increased income for farmers, ensure food and nutritional security, and contribute to the reduction of poverty in rural areas by creating jobs and self-employment opportunities in the regions.
Order on measures to finance benefits provided from the state budget to agricultural producers
On July 24, 2020, Azerbaijani President Ilham Aliyev signed a decree on measures to finance benefits provided from the state budget to agricultural producers.
The decree says that 20 million manat ($11.7 million) is allocated to the Agrarian Credit and Development Agency from the reserve fund of the President of Azerbaijan envisaged in the 2020 state budget of Azerbaijan.
In accordance with the order, out of the amount specified in subparagraph 1.65-1 ‘Distribution of funds envisaged in the state budget of Azerbaijan for 2020 for state investments (investment expenditures)’, 20 million manat ($11.7 million) is allocated to the Agrarian Credit and Development Agency.
Signing a Memorandum of Understanding for personnel to ensure health and protection of plant, to increase productivity
On October 26, 2020, a Memorandum of Understanding was signed between the Agrarian Services Agency under the Ministry of Agriculture of the Republic of Azerbaijan, the Azerbaijan State Agrarian University and the Public Association of Producers and Importers of Fertilizers of Azerbaijan.
The signing of this document is an important step in expanding public-private partnership in the agricultural sector.
The Memorandum of Understanding was signed to ensure the correct and timely use of production capacity to increase production in the country, organize phytosanitary measures and coordinate services, and train qualified personnel to ensure plant health and protection, increase productivity.
Action Plan for the Development of Agriculture in the Liberated Territories of Azerbaijan
In November 2020, the preparation of an action plan for the development of agriculture in the territories of Azerbaijan liberated from Armenian occupation began in Azerbaijan.
The plan provides for bringing these lands to a suitable state, their restoration, and then the establishment of land reclamation systems there. At the same time, these lands will be grouped according to their purpose and an electronic registration system for these lands will be created.
Further, a mechanism will be determined for the transfer of these lands for use by people who will live there.
One of the main issues is the creation of recommendation and information centers that will help the citizens who have returned to these territories to adapt and start agricultural activities. It is clear that most of the people who were once expelled from here were not engaged in agriculture, and the children born after the occupation have no idea about this area. Therefore, local consultation centers will be created, in which the Ministry of Agriculture will conduct trainings.
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