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Turkish production, high gas tariffs "kill" Armenian hothouses

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  • Turkish production, high gas tariffs "kill" Armenian hothouses

    Turkish production, high gas tariff and taxes for import of equipment
    "kill" Armenian hothouses

    arminfo
    Saturday, June 16, 20:38

    The out of control import of production of Turkish green houses to
    Armenia and fixing of high prices by importers, hinders development of
    hothouse agriculture in the country, Director of the Association of
    Hothouses, Pogos Gevorgyan, and a farmer, deputy head of Darakert
    district, Varuzhan Khodedanyan, said at today's press-conference.

    Khodedanyan said that only in the winter season 2011-12 Armenian
    customs services started completing documents for the production of
    hothouses arrived from Turkey. Earlier it was imported without any
    control. Moreover, importers dictated to fix high prices for this
    production, for instance, standard price for tomatoes is 1000 drams
    (about $2,5) per one kilogram. Meanwhile, the tariff for gas used in
    hothouses grew by 30% for the last year, and local hothouses cannot
    increase price for their production, the prime cost of which has
    grown, he said. Moreover, the quality of gas has fallen and if for
    heating of his hothouses 2,2thsd sq/m Khodedanyan spent 70 thsd sq/m
    of gas in winter season 2010-11, in winter season 2011-12 he spent
    107thsd sq/m of gas and gas expenditure increased by 3,5 mln drams.
    Gevorkyan added that hothouse farms are forced to stop functioning
    because of unacceptable conditions of gas supply and repayment of
    debts to "ArmRusgasprom".

    He also added that 32% of tax burden for import of equipment for
    hothouses also hinders extension of hothouses in the republic. For
    this reason, the plans of Chinese investors which were going to invest
    about $100 mln in the branch in Armenia as well as the plans of the
    Russian "Rosagrolizing" to invest 20 mln EUR were disrupted.

    Khodedanyan also said that the blast which kills plants in hothouses
    interfered Armenia together with Turkish tomatoes. For this reason,
    France, Russia and Ukraine refused to import Turkish tomatoes. But 60
    tonnes of Turkish vegetables and fruits are imported to Armenia every
    week, he said.

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