Expert on the reason for the increase in imports: "Production in Azerbaijan is expensive"
Expert on the reason for the increase in imports: "Production in Azerbaijan is expensive"
In a bid to bolster domestic production and curb reliance on imports, Azerbaijan's Cabinet of Ministers has approved a list of food products earmarked for a transition from foreign to local alternatives. The decision, signed by Prime Minister Ali Asadov, primarily focuses on items such as Table Olives, rusks, cookies, canned fresh pies, pasta, noodles, couscous, cocoa, chocolate, and sugar confectionery.
While the government's intention is to foster local production, reduce import dependency, and mitigate potential price hikes, concerns have arisen about the effectiveness of this strategy. Notably absent from the list are many essentials found in the minimum consumer basket, reflecting the challenges of an all-encompassing shift to local alternatives.
in a comment for Turan, underscores the government's objective to boost local production, create jobs, and augment tax revenues. He sees the decision as a pivotal step toward enhancing food security and delivering locally produced goods to the Azerbaijani population.
However, Vahid Maharramli, an agricultural expert, paints a less optimistic picture, asserting that Azerbaijan faces inherent challenges in basic food production. In an interview with Radio Azadlig, he points to high costs, low productivity, and quality issues as impediments to self-sufficiency. Maharramli emphasizes problems with irrigation water, expensive means of production, and dependence on imported machinery, equipment, fertilizers, and seed materials.
Maharramli is skeptical about the government's approach, suggesting that importing raw materials and processing them locally may not lead to true self-sufficiency. He argues that while certain products like cookies and candies are manufactured in Azerbaijan, consumer preferences often favor imported alternatives due to perceived quality differences.
The expert proposes a shift in focus towards producing raw materials within Azerbaijan, contending that this approach would encourage local entrepreneurs to improve product quality through processing. Despite these critiques, the Cabinet of Ministers has yet to respond to these concerns, leaving the effectiveness of the government's strategy uncertain. The tension between supporting domestic industries and meeting consumer demands for quality and variety adds complexity to Azerbaijan's pursuit of food self-sufficiency.
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- Politics
- 18 January 2024 15:42
Economics
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