FAO on Causes of Inhibition of Local Agricultural Industry
A report by Elchin Suleymanov, Caucasus University lecturer in the context of the review of the Food and Agriculture Organization of the United Nations (FAO) on food trade policy in the post-Soviet countries in 2014-2015 has been published (http://www.fao.org/3/a-i5433r.pdf).
According to the researcher, in the field of agricultural industry economic structure and production are based on private family businesses, which creates certain difficulties in access of agricultural products to the international market. In addition, the access of local agricultural products to the international market is also prevented by the insufficient number of companies or officially registered individuals and legal entities involved in their sale and export. "So, in 2014, total exports amounted to 21.8 billion US dollars, and imports were 9.19 billion; in the exports of agricultural products by categories the main place (57.3%) is occupied by vegetables, root crops, fruits and. nuts, citrus fruits, fats and vegetable and animal oils amounting to $ 481.4 million. A basic place in imports is taken by sugar and confectionery (26.3%), dairy products, birds' eggs, natural honey and other products of animal origin (16.4%).
Overall, in 2014, 3.8% of total exports and 16.6% of imports came from agricultural products.
In the marketing and organization of export of agricultural products there are no special achievements observed. The main reason for this situation is the low number of medium and large farms and the concentration of the bulk of production in weak family farms. The country is still negotiating to join the World Trade Organization (WTO).
One of the problems arising in the course of lengthy negotiations between Azerbaijan and the WTO is due to the fact that the country hopes to join the Organization with the status of a developing country. Another important cause of the difficulties when joining the WTO is the amount of subsidization of the agricultural sector. Exemption of agricultural producers from taxes at the moment is an important step to stimulate agricultural production. "WTO accession would strengthen the economic integration of the country, increase its export potential, enhance competition in the domestic market and reduce the influence of monopolies and, most importantly, increase the confidence in the national economy," the report says. --17D-
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- Economics
- 29 March 2016 07:52
Economics
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