Agriculture in Azerbaijan (January-September 2016)

The Republican Commission of the Azerbaijani Ministry of Agriculture decided to deliver subsidies in the amount of 82,372,618 manat to 385,247 agricultural producers in September.

The subsidies were delivered for the purchase of fuel and engine oil, wheat, seedlings, cotton and tobacco for sowing 1,231,262 hectares.

The documents for the payment of funds were sent to the Azerbaijani Ministry of Finance, Kapital Bank OJSC, the regional agriculture departments and the executive power.

Four companies, namely, Aqrolizinq, Aqroline Group, MKT IK and EKO Trade decided to allocate subsidies in the amount of 4,281,166 manat with a 70-percent discount for 5,019 producers to purchase mineral fertilizers.

The Commission also made a decision that Aqrolizinq, Aqrokimya, EMA and Aqrico companies will allocate subsidies to 2,413 producers in the amount of 347,342,940 manat with a 70-percent discount on the purchase of pesticides.

Benefits worth 50 manat per hectare are granted for the purchase of fuel and motor oil, while 40 manat for sowing one hectare to wheat, rice, cotton and tobacco.

Benefits have been allocated to agricultural producers in Azerbaijan since 2007. Agricultural producers are exempted from payment of all taxes (except land tax) in accordance with the law "On the granting tax incentives to agricultural producers" in Azerbaijan dated November 27.

Azerbaijani President Ilham Aliyev signed a decree on state support for the development of sericulture in the country in September.

According to the decree, the subsidy will be set per each kilogram of raw silk cocoons to enhance public support for the development of sericulture, which is one of the traditional sectors of agriculture in the country, effectively use the potential opportunities of this area, improve competitiveness and employment in the silkworm production, arouse interest in this area and further improve social well-being of individuals, breeding silkworms.

The Azerbaijani Cabinet of Ministers was charged with approving the amount and procedure for issuing subsidies to the individuals, engaged in silkworm breeding, for each kilogram of raw silk cocoons received by cocoon processing and silk producing enterprises; solve other issues arising from this decree within two months.

The Cabinet of Ministers must coordinate the issue with the Azerbaijani president.

Azerbaijani President Ilham Aliyev also signed a decree on state support for cotton production in the country in September. According to the decree, subsidies in the amount of 0.1 manat are planned to be delivered to the cotton producers for each kilogram of raw cotton sold to the processing companies to strengthen the state support for cotton-growing.

This decree refers to the raw cotton produced and sold to the processing companies in 2016.

The agricultural production volume in actual prices amounted to 4.61 billion manat in Azerbaijan in January-September 2016 or by 2.4 percent more compared to the same period of 2015.

According to the Azerbaijani State Statistics Committee’s report, the livestock production increased by 3.1 percent (in actual prices – 2.220 billion manat), crop production reached 2.394 billion manat, which is by 1.8 percent more than in January-September 2015.

Plant cultivation

Grains and legumes were harvested in Azerbaijan during the reporting period.

As of October 1, 2016, some 2.84 million tons of grain were collected from a 959,600 hectare-territory (99.8 percent of the total sown area), which is by 2.2 percent more than in January-September 2015. On average, some 29.6 centners of products were collected from each hectare.

Some 174,500 tons of corn were harvested from a 29,600-hectare-territory.

The highest corn yield was recorded in Azerbaijan.

In particular, corn was harvested in Yalama agricultural park located in Azerbaijani Khachmaz region. Some 1,564 tons were collected from a 100 hectare-territory. More than 15.6 tons of corn were collected from each hectare.

In general, some 870,900 tons of potatoes were collected during the reporting period, which is by 5.9 percent more than in the same period of 2015, 1.15 million tons of vegetables (1.7 percent less), 461,400 tons of melons (4.2 percent less).

The tobacco harvesting increased by 9.8 percent and amounted to 3,100 tons due to an increase in tobacco growing area.

As of October 1, some 17,100 tons of sunflower were cultivated in the country. Moreover, some 7,100 hectares of sugar beet were planted in 2016. As of the end of the reporting period, some 59,100 tons of crops were harvested from 25.9 percent of the cultivated area.

Moreover, some 538,800 tons of fruits and berries were collected in the country, which is by 1 percent more than in the same period of 2015, 98,700 tons of grapes (by 11.6 percent more), and 891.9 tons of tea (by 60.3 percent more).

Some 481,900 hectares were plowed, which is by 3.2 percent more than in the same period of last year.

Cattle breeding

Some 341,300 tons of meat in live weight, 1.51 million tons of milk, 1.21 billion pieces of eggs and 16,800 tons of wool were produced for the reporting period.

Meat production increased by 3 percent, milk - by 2.5 percent, eggs by 4.9 percent, wool – 1.5 percent in the country compared to January-September 2015.