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Cost of bread may rise to 50 qepicks (over 50 cents) in Azerbaijan
19 April 2008 [13:05] - Today.Az
If the government takes correct steps, there will be no problems with
supply of grain to the population in Azerbaijan.
The due announcement was made by MP Vahid Ahmedov, member of the
permanent parliamentary commission on economic policy, commenting
on Kazakhstan's application of a four months ban on grain import to
protect local consumers from global grain deficit. According to him,
the restrictions, applied by Kazakhstan, may influence grain supply
of our country.
"The Ministry of Agriculture assures that grain reserves are sufficient
for meeting the demand, nevertheless, the situation on the global
market is too complicated, in particular, the European countries face
problems in this area". He said anyway Azerbaijan has no problems
with finances, therefore, it may import grain from any region of
the world grain market. But according to him it is necessary to pay
more attention to agriculture, invest into development and expansion
of strategic production in the future. "We are raising this issue
for the second year, yet we feel no due attention to the problem of
agricultural development.
Sayad Verdiyev, entrepreneur and leader of the Head Department of
Union of Agricultural Farms, considers that entrepreneurs, engaged
in grain business, expect rise in the cost of grain.
"The most important which is expected is the further rise in the
cost of bread up to 40-50 qepicks for a loaf". He said along with
restrictions applied by Karabakh, Russia also restricts export of
production, therefore, it is difficult to imagine possible results
of such state.
It should be noted that Kazakhstan is the fifth larger grain exporter
on the global market, which produces nearly 20,000,000 tons of
grain per year. The main part of production is exported to the world
market. By official data, Azerbaijan imported nearly 250,000 tons of
mostly Russian grain in January-March of this year.
A week ago Prime Minister of Kazakhstan Karim Makhimov stated possible
restriction or ban of grain export. He instructed the government to
consider possible application of export tariffs on grain and prepare
due proposals by the end of the week. In March of this year Kazakhstan,
being one of the biggest grain exporters to Azerbaijan, considered
possible application of export tariffs. The prices on worls markets
have already risen by 25% after the official information about
Kazakhstan's intention.
However, official circles of Azerbaijan consider that the
restrictions will not influence grain supply of the internal market
of Azerbaijan. According to the Ministry of Agriculture, even in case
of restriction of Kazakh grain import to Azerbaijan the country will
not face problems with meeting internal demands for this strategic
product, as last year the country produced over 2,000,000 tons of grain
on the whole existing area of over 739,000 hectares. On the whole,
the grain productivity has risen by 0.6 centner per a hectare and
reached 27.1 centners per hectare from two years ago. At the same
time, greater part of grain production fell on wheat production,
making up 1,321,000 tons which is 64.4% of grain production.
Moreover, allocation of additional subsidies to grain producers in the
amount of AZN 40 per each hectare also had a positive influence. The
wheat sown area expanded by 114,000 hectares and exceeded 600,000
hectares last year. The sown area of barley and other autumn cultures
expanded by 134,000 hectares last year.
/Echo/
19 April 2008 [13:05] - Today.Az
If the government takes correct steps, there will be no problems with
supply of grain to the population in Azerbaijan.
The due announcement was made by MP Vahid Ahmedov, member of the
permanent parliamentary commission on economic policy, commenting
on Kazakhstan's application of a four months ban on grain import to
protect local consumers from global grain deficit. According to him,
the restrictions, applied by Kazakhstan, may influence grain supply
of our country.
"The Ministry of Agriculture assures that grain reserves are sufficient
for meeting the demand, nevertheless, the situation on the global
market is too complicated, in particular, the European countries face
problems in this area". He said anyway Azerbaijan has no problems
with finances, therefore, it may import grain from any region of
the world grain market. But according to him it is necessary to pay
more attention to agriculture, invest into development and expansion
of strategic production in the future. "We are raising this issue
for the second year, yet we feel no due attention to the problem of
agricultural development.
Sayad Verdiyev, entrepreneur and leader of the Head Department of
Union of Agricultural Farms, considers that entrepreneurs, engaged
in grain business, expect rise in the cost of grain.
"The most important which is expected is the further rise in the
cost of bread up to 40-50 qepicks for a loaf". He said along with
restrictions applied by Karabakh, Russia also restricts export of
production, therefore, it is difficult to imagine possible results
of such state.
It should be noted that Kazakhstan is the fifth larger grain exporter
on the global market, which produces nearly 20,000,000 tons of
grain per year. The main part of production is exported to the world
market. By official data, Azerbaijan imported nearly 250,000 tons of
mostly Russian grain in January-March of this year.
A week ago Prime Minister of Kazakhstan Karim Makhimov stated possible
restriction or ban of grain export. He instructed the government to
consider possible application of export tariffs on grain and prepare
due proposals by the end of the week. In March of this year Kazakhstan,
being one of the biggest grain exporters to Azerbaijan, considered
possible application of export tariffs. The prices on worls markets
have already risen by 25% after the official information about
Kazakhstan's intention.
However, official circles of Azerbaijan consider that the
restrictions will not influence grain supply of the internal market
of Azerbaijan. According to the Ministry of Agriculture, even in case
of restriction of Kazakh grain import to Azerbaijan the country will
not face problems with meeting internal demands for this strategic
product, as last year the country produced over 2,000,000 tons of grain
on the whole existing area of over 739,000 hectares. On the whole,
the grain productivity has risen by 0.6 centner per a hectare and
reached 27.1 centners per hectare from two years ago. At the same
time, greater part of grain production fell on wheat production,
making up 1,321,000 tons which is 64.4% of grain production.
Moreover, allocation of additional subsidies to grain producers in the
amount of AZN 40 per each hectare also had a positive influence. The
wheat sown area expanded by 114,000 hectares and exceeded 600,000
hectares last year. The sown area of barley and other autumn cultures
expanded by 134,000 hectares last year.
/Echo/