Food prices are rising. What is the reason?

According to data released by the State Statistics Committee, silk production in Azerbaijan reached 239.4 tons in the January-August period of 2024, which is 32.9% less compared to the previous year. It should be noted that the decline in silk production for 2024 was evident from the beginning of the year, as significantly fewer silkworm seeds were distributed to farmers compared to previous years. Specifically, in 2021, the government distributed 14,700 boxes of silkworm seeds to farmers free of charge, in 2022 – 11,130 boxes, in 2023 – 11,500 boxes, and in 2024, only 9,000 boxes were given to silk producers. As a result, the number of free boxes distributed in 2024 decreased by 5,700 compared to 2021, representing a 38.7% decline.

According to the data published by the State Statistics Committee, in August 2024, the Consumer Price Index (CPI) in Azerbaijan increased by 103.5% compared to August 2023. This includes an increase of 103.0% in food products, beverages, and tobacco products, 101.8% in non-food products, and 105.6% in paid services provided to the population.

According to information provided by the State Customs Committee, our calculations indicate that during the January-August period of 2024, the import value of food products increased by 9.8% compared to the same period last year.

Since the beginning of the last century, Azerbaijan has expanded its vineyards and increased production. For instance, while in 1913, vineyard areas in the country totaled 22.9 thousand hectares, by 1967, they had grown to 102.9 thousand hectares, and in 1984, to 284.1 thousand hectares.