Drop in agricultural production will cause higher prices - expert

The increase in prices of agricultural products is  due to sharp decline in production,  said in an interview with Turan and "Voice of America" ​​expert of the Center for Economic Research, Vahid Maharramov. "The growth of imports of meat this year, compared with 7 months of last year amounted to 91%, dairy products - 60%, fruit and vegetables - 32%, tea - 81%, sugar - 20%.

The  increase of dollar rate  inevitably  affects the growth of the market prices," the expert said.

Maharramov said the current agricultural subsidy system is ineffective. "In some cases, the subsidies do not reach the addressee. Even the head of state said that the subsidies do not reach the farmers. and  are  misappropriated  by officials.

Subsidies are given to agriculture since 2007. The priority was grain. Each year80 manat subsidiary is allocated  per hectare, but  just since 2007 grain imports into Azerbaijan  has  increased," he said.

The expert stressed that the country had not created the conditions for fair competition. Free-to-market   are not created for farmers. There is a problem of processing agricultural products.

About 2.000 medium-sized mills are out of action, because farmers have ceased to grow grain due to low prices. At the same time, grain imports  is increasing, as local production is insufficient.

"The rise in prices for meat and meat products is the result of this policy; despite the number of pastures in Azerbaijan is very little, they were given to the planting of grain, and then cotton. Because there is no place to graze the last two years, farmers have been forced to send animals for slaughter. Then the price  for  beef in the regions decreased to four manat. But it was clear that in the future there will a deficit of meat and milk. Now we see the consequences of this," Maharramov said.

Speaking about the WTO requirements on the inadmissibility of subsidizing more than 5% of agricultural production, and what difficulties may arise if we join the organization, the expert stressed that  in Azerbaijan a large number of subsidies are not aimed at directly in agricultural production.

Currently, agricultural subsidies are much higher than 5%. But much of them do  not stimulate agricultural production. In such subsidies are interested officials and it is not associated with the development of production, he said.

Anticipating a possible increase in prices for agricultural products this winter, Maharramov said that this year was observed the  serious decline in agricultural production. "Previously, part-to-market, while the other part was kept in special refrigerators. Now there is not  such a stock. Therefore, it will cause  a rise in prices," the expert believes. –75В-