Azerbaijan to begin issuing subsidies for intensive gardens

It has been decided to allocate 292 million manats for subsidies for the sown area in Azerbaijan in 2019, Azerbaijan’s Deputy Minister of Agriculture Ilham Guliyev said at a press conference, Trend reports.

According to him, this is done in order to increase interest in intensive gardens.

Guliyev stressed that a 13-percent increase was recorded in the agricultural sector over six months of 2019.

Azerbaijan has defined a new procedure for subsidizing agricultural producers, under which farmers engaged in growing crop products can apply for three types of subsidies: for sowing, production of agricultural products and purchase of seeds. Fixed amounts of subsidies are established for producers of livestock products. The order was approved by the relevant decree of President of Azerbaijan Ilham Aliyev on June 27, 2019.

Crop subsidies

According to the procedure, the size of the subsidy for crops will be calculated as follows: base amount x seed coefficient = seed subsidy.

The sowing coefficient is set by the Council of Agricultural Subsidies and depends on the region and the level of support for production. The base amount is 200 manats.

At the same time, subsidies cover 70 percent of the cost of fertilizers and vermicompost purchased for sowing, the remaining 30 percent is paid by the farmer.

If the farmer did not use the subsidies allocated for sowing, then they can use the subsidies during the same year during the next sowing. However, if the subsidies are not used during the year, they will be returned to the state budget.

The size of subsidies increases by 10 percent for agricultural cooperatives that carry out crops on the territory of more than 50 hectares.