Agrarian subsidies: Ineffective targeted concession policy

According to data presented by the State Statistical Committee, 924.7 thousand tons of potatoes were produced in Azerbaijan in 2025, which is 2,700 tons less than in the previous year. It should be noted that in 2025 the area under potato cultivation decreased by 1,800 hectares compared with the previous year. As the figures show, the decline in potato production in 2025 compared with previous years was primarily caused by the reduction in cultivated areas. Unfortunately, the trend of shrinking potato planting areas has continued for many years.

Although the State Statistics Committee reported a 0.4 percent increase in meat production in January 2026 compared with the same period of the previous year, it recorded a decline in the production of other livestock products.

Baku faces a new challenge in its food market after Iran temporarily halted exports of agricultural and food products, a move that could disrupt supplies of low-cost goods widely consumed by poorer households in Azerbaijan.

In 2018, the Government of Azerbaijan adopted the “State Program for the Development of Rice Cultivation in the Republic of Azerbaijan for 2018–2025.” As stated in the document, the objective of the State Program was to more fully satisfy the country’s population demand for rice, substitute imports, develop the rice processing industry, increase employment among the rural population, and stimulate the development of the rice cultivation sector.