Agrochemicals market completely liberalized in Azerbaijan

Due to the fact that this year subsidies are provided to farmers through the Electronic Agricultural Information System for the first time ever in Azerbaijan, there have been misunderstanding in a number of related issues, as explained by Mirza Aliyev, Chairman of the Azerbaijani Agrarian Credit and Development Agency under the Ministry of Agriculture of Azerbaijan.

“One of the main issues that confuse farmers is the liberalization of the supplier market. Although we, as farmers, create conditions for the registration of suppliers, they must carry out their activities in the regions and promote it among farmers. We have posted a list of these suppliers and their contact numbers on our website, but beyond this, they should improve logistics and relations with the farmers,” the Chairman said.

“However, Mr Aliyev noted, the fertilizer and pesticide market has been completely liberalized in the country.”

In his opinion, Azerbaijani farmers are not used to buying a card.

“As you know, according to the rules, only 25% of the subsidiary funds from may be cashed. In the balance sheet of the farmer’s card, cash and non-cash funds are separately visible. A farmer who wants to buy fertilizer can pay 70% of the price of the product by using non-cash funds on the card. The remaining 30% must be paid in cash or non-cash. Until this year, in accordance with the existing rules for the sale of fertilizers, 70% of the price was paid directly to the state supplier, the farmer saw only 30% of the price that he paid. Now these funds are transferred to farmers as subsidies,” Mirza Aliyev said.

The new rules for subsidizing agricultural production has come into force since the beginning of the year. The subsidies will be issued to farmers through the Electronic Agricultural Information System in accordance with these rules.

The new mechanism related to agricultural support measures serves to increase accountability, transparency, ensure the efficient use of budgetary funds, as well as simplify the process of farmers’ circulation and the provision of subsidies to them.