BAKU, Azerbaijan, Jan. 8
By Eldar Janashvili – Trend:
The changes made according to a decree in relation to the optimization of the mechanism for issuing subsidies envisage stability, sustainability and simplification of the issuance of subsidies in Azerbaijan, Trend reports referring to Azerbaijani Cabinet of Ministers.
Previously, a separate subsidy was issued for each agricultural product, and decrees were signed for each subsidy. For example, a decree on crop production was signed, and a one-time subsidy was allocated to a farmer in the amount of 100 manat ($58.8) per hectare.
Separate decrees were also signed for livestock, beekeeping and fish breeding farms. Tobacco growing and cotton growing were not included in this list.
After the adoption of a single rule, along with the signing of a separate decree, there is no need to sign a new one and, finally, subsidies are issued for the production of tobacco and raw cotton.
In other words, there is no need to sign the same decrees in each sphere. As a result, a one-time mechanism covering all spheres, which is a single system of regulatory nature, is created, and duplication is eliminated.
In accordance with the decree, a new, more stable and long-term mechanism for issuing plastic cards is being formed.
Previously, three-year plastic cards, to which subsidies were transferred, were issued only to farmers involved in the field of crop production, including tobacco growing and cotton growing.
The new unified rules also envisage the issuance of three-year plastic cards for cattle breeders. This ensures the stability and simplicity of the state support for farmers.
The third important point is that previously, farmers appealed for plastic cards to the Ministry of Agriculture and the Ministry of Finance separately. From now on, they will appeal only to the Agency for Agrarian Credit and Development under the Ministry of Agriculture.
Thus, the new single rule:
- creates regulatory mechanisms of state support for farmers involved in cotton growing, tobacco growing and livestock sector;
- strengthens state support for agriculture;
- forms a stable and easily predictable mechanism of state support;
- simplifies the procedure for registration in the process of subsidizing;
- allows farmers to draw up a clear, long-term business plan for up to three years; and
- reduces investment risks in agricultural production.
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