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Baku/17.09.21/Turan: The Prime Minister of Azerbaijan Ali Asadov signed a decree on the eve of amending the Cabinet of Ministers resolution "On additional measures to reduce the negative impact of the growth in the import price of milling wheat on the cost of flour and flour products sold domestically."
To pay subsidies to flour producers, a wholesale selling price for it in the amount of not more than 520 manats is taken as a base. The maximum margin is also set at 25%, taking into account domestic costs.
The size of the subsidy will be determined based on the cost of the average monthly imports of wheat to Azerbaijan plus the margin and the difference with the wholesale selling price of flour.
The average monthly value of imports is defined as the price of imports of milling wheat plus the duty imposed by the exporting country.
If the wholesale selling price for flour on the part of producers exceeds 520 manats per ton, then the size of subsidies will be reduced for this difference.
This mechanism will come into force on September 1, 2021 and will remain in effect until a new sustainable mechanism is developed.
Expert-economist Natig Jafarli considers measures to support flour producers insufficient. According to him, the decree only restores the allocation of subsidies in the amount of 35 manats for each ton of flour. These amounts do not cover the rise in prices on the world market, the expert believes.-- 21B-
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