EU eyes to support issuing subsidies for agriculture

The State Agency on Management of Agricultural Projects and Credits under the Ministry of Agriculture of Azerbaijan plans to implement a joint project with the EU to issue subsidies, head of the agency Mirza Aliyev told Trend.

He noted that this project is planned to be launched since April 15.

Aliyev said that there are a lot of plans, noting such as a project to increase agriculture employment (AMAL), a joint project with the Food and Agriculture Organization (FAO) of the United Nations in organizing information and consulting services and others.

He further noted that this year the agency will issue loans worth 10 million manats.

Aliyev said that the same amount of funds was allocated last year. He added that the active portfolio of the agency is 95 million manats.

At the same time, he expressed hope that about 50-60 million manats will be allocated additionally for the purchase of agricultural machinery and equipment.

Turning to the purchase of agricultural machinery, it should be noted that from February 15, agricultural machinery in Azerbaijan will be sold under the new rules.

The ministry noted that the preferential sale of agricultural machinery will be carried out not only by OJSC "Agroleasing".

Approximately 20 percent of the customs value of the equipment will be paid by the farmer, and 40 percent, as a subsidy, by the Agrarian Credit and Development Agency.

The ministry noted that the paperwork was also carried out at “Agroleasing” OJSC, and now, after acquiring equipment at any company, clearance will be carried out at authorized banks, and not at “Agroleasing” OJSC.

“The farmer will be liable not to Agroleasing, but to the bank,” the ministry said.

The ministry cited as the main reason for such changes that “Agroleasing” OJSC has no mechanisms for tracking loans, but banks do.

It should be noted that development of agriculture is constantly in the spotlight of the Azerbaijani government. The competitiveness of Azerbaijani agricultural products is growing, export opportunities are expanding. In most areas of the agricultural sector, production increases with the direct and indirect support of the state.

Moreover, the state has enough potential and capabilities to use extensive and intensive ways of development to achieve goals which have been set, taking into account all economic indicators.