Ten important agricultural events in 2021

I. 04.0.2021 The Tariff (Price) Council of the Republic of Azerbaijan has increased the retail price for AI-92 gasoline by 11.11%, and for diesel fuel - by 33.33%. The rise in prices for diesel fuel and gasoline has significantly increased the cost of production and logistics of agricultural products.

II. In order to eliminate the possible impact of changes in diesel prices on agriculture, the Agricultural Subsidies Council decided to provide additional subsidies to farmers in 2021 for sowing crops.[1]

III. 12. 03 2021 The "State program to stimulate the production, processing and export of agricultural products in the Nakhchivan Autonomous Republic for 2021-2025" was approved... [2]

IV. 29.03.2021 The foundation of the first project "Smart Village" was laid in the  Zangilan region liberated from the occupation.

V. 28. 04. 2021 The President of the Republic of Azerbaijan signed a decree "On the new division of the economic regions of the Republic of Azerbaijan."

VI. 06.10.2021 The 14th Azerbaijan International Agriculture Exhibition (Caspian Agro 2021) and the 26th Azerbaijan International Food Industry Exhibition (InterFood Azerbaijan 2021) were held in Baku.[3]

VII. 15.07.2021 President Ilham Aliyev signed a decree "On a number of measures to develop the manufacturing and processing industry in the agricultural sector." [4]

VIII. 07 09. 2021 In accordance with clause 2.4 of the "Rules for subsidizing agricultural production", approved by the Decree of the President of the Republic of Azerbaijan dated June 27, 2019, the Council on Agrarian Subsidies decided to establish sowing, yield and seed rates, quotas for seeds and seedlings and on the needs of sowing by plants and regions in the field of crop production for 2022. By the adopted decision, amendments were made to the "Rules for subsidizing agricultural production".[5]

IX. 15. 09. 2021. The list of crops required for insurance to receive subsidies in the agricultural sector of Azerbaijan has been approved.

X. 22.12. 2021 The Cabinet of Ministers made changes to the "Rules of Agricultural Insurance" approved by the Resolution of the Cabinet of Ministers of the Republic of Azerbaijan No. 431 dated October 30, 2020.[6] In connection with the amendments, the number of species of plants and animals insured through agricultural insurance has increased in Azerbaijan. The number of plant species insured with the help of state support has increased from 14 to 41. The list of insured animals includes small ruminants (sheep and goats) and beef cattle (calves), and the list of risks covered by agricultural insurance has been expanded.

In the history of Azerbaijan such  quantity of food products  have never been imported in a year.

2021: Rising production costs in agriculture, scarcity of irrigation water and other problems.

The outgoing 2021 will be remembered for a number of problems in the agriculture of Azerbaijan.

Thus, an increase in the retail price of diesel fuel by 33.33% and gasoline by 11.11% since the beginning of 2021 has significantly increased the costs of agricultural producers. As an example, we can say that the cost of work performed by agricultural services in the field of cotton has increased by at least 30%. Compared to last year, in 2021, in cotton growing, the price of plowing increased by 25%, packing - by 33.33%, sowing - by 33.33% cultivation, 33.33% pinching by -25% spraying (with pesticides) - by 33 , 33%, cleaning - by 36.36%. As in previous years, villagers suffering from irrigation water shortages in low-lying areas have had to incur additional costs this year to use the accumulated sewer water for irrigation. For this, water pumps with a diesel engine were used. According to farmers who grow cotton, for double irrigation of 1 hectare of a cotton plot, they had to spend an additional 200 manat on the purchase of diesel fuel or for pumping equipment. Our calculations show that farmers and villagers using water pumps had to spend 299 manats more on 1 hectare of cotton land this year than last year.

In 2021, as in previous years, farmers and villagers faced the problem of a shortage of irrigation water in spring and summer.

Agricultural production in 2021

According to the State Statistics Committee, in January-November this year, Azerbaijan produced agricultural products for 8 billion 612.1 million manats, by 3.8% more than in the same period last year. According to the report, the cost of plant growing products produced in the country increased by 4.8% to 4 billion 379.5 million manats, and the cost of livestock products increased by 2.8% to 4 billion 232.6 million manats.

According to the latest data from the Ministry of Agriculture and the State Statistics Committee (State Statistics Committee, in 2021, the country received 1,885.4 thousand tons of wheat, which is the main food product, from 611,967.3 hectares. This is 332.9 thousand tons less government forecast for 2021. According to APA-Economics referring to the package of the state budget of the Republic of Azerbaijan for 2020, the production of 2,218.8 million tons of wheat was expected in the country in 2021. In 2021, wheat was produced even less than in 2009 by 255 thousand tons. So, in 2009, wheat production amounted to 2,140.7 million tons. In 2021, the wheat yield decreased by 0.9 centners compared to 2020 and by 1.6 centners compared to from 2019

In January-November 2021, the country imported 1 million tons of wheat worth 287.5 million dollars.In 2021, wheat imports to the country in physical terms were 16.9% less, but 9.5% more in value terms. Wheat imported into the country in January-November was 31.9% more than a year earlier. Over the past two months, the value of wheat imports increased by 46.5% compared to the same period last year. As a result of the rise in prices for imported wheat, the price of wheat flour in the country increased by 13-15%. Over the past two months, the rise in prices for imported wheat has had a significant impact on the prices of grain products in the domestic market. According to information received from the regions, prices for feed wheat in rural areas rose by 50%.

This year was also unsuccessful for cotton growing. This year, cotton in the country was sown on an area of ​​73.7 thousand hectares, which is 26.5% less than in the same period last year. In 2021, cotton production fell sharply and productivity fell sharply. Until December of this year, 271.8 thousand tons of cotton were harvested, which is 17.2% or 56.4 thousand tons less than in the same period last year. The harvest has already been completed on 99% of the sown area. The yield fell by 5.5 centners per hectare compared to last year, decreased from 32.9 centners to 27.4 centners.

2021: Imports of agricultural products increase, while exports decrease.

In January-November this year, compared to the same period last year, food imports increased by $ 238.5 million, or 16.3%. So, if in January-November 2020 the country imported food products for $ 1.46 billion, then food imports for the same period of this year amounted to $ 1.7 billion. Until now, in the history of Azerbaijan, the country has not imported so many food products during the year.

Calculations based on data from the State Customs Committee show that in January-November 2021, the revenue of tomato exporters decreased by $ 50 million compared to the same period last year. During this period, the income of entrepreneurs engaged in the export of hazelnuts decreased by 5 , 8 million dollars, and the income of entrepreneurs engaged in the export of tea - by 860 thousand dollars.

2021: Consumer prices for agricultural products rose sharply

According to the SCS, in January-November 2021, the consumer price index, compared to January-November 2020, amounted to 106.2%, including 107.4% for food, beverages and tobacco. In November 2021, the consumer price index for food, beverages and tobacco products amounted to 114.9% compared to November last year.

In 2021, there was a significant increase in the prices of basic agricultural commodities and food products. Thus, in 2021, prices for food wheat (flour and flour products), rice, meat (sausages, chicken, beef and lamb), fresh and frozen fish, milk and dairy products (butter, skim milk, cottage cheese, sour cream , yogurt, cheese), eggs, fruits (grapes, pears, walnuts, hazelnuts), vegetables (cucumbers, eggplants, peppers, cabbage, potatoes, onions, garlic), sugar and powdered sugar, tea increased compared to the previous year.

[1] https://www.agro.gov.az/az/news/aqrar-subsidiya-surasi-fermerlerin-dizel-yanacagi-ile-bagli-artan-xerclerini-kompensasiya-etmek-meqsedile-ekin-subsidiyasi-emsallarini-artirib

[2] http://www.serqqapisi.az/index.php/enzhlishhh/30187-2021-2025-dzi-illaerdae-nakhdzh-van-mukhtar-respublikas-nda-kaend-taesaerrufat-maehsullar-n-n-istehsal-emal-vae-ikhradz-n-n-stimullashd-r-lmas-na-dair-doevlaet-prozhram-n-n-taesdizh-edilmaesi-hazhzh-nda-nakhdzh-van-mukhtar-respublikas-ali-maedzlisi-saedri.html

[3] https://qaynarinfo.az/az/bakida-14-cu-azerbaycan-beynelxalq-kend-teserrufati-sergisi-kecirilir-fotolar/

[4] https://president.az/articles/52463

[5] https://www.agro.gov.az/az/news/aqrar-subsidiya-surasi-2022-ci-il-uecuen-subsidiya-emsallarini-aciqladi

6 https://nk.gov.az/az/document/5757/