Azerbaijan allocates $44.1m to cover wheat prices, export duties gaps

By Azernews

By Ayya Lmahamad

Prime Minister Ali Asadov stated that the Azerbaijani government has allocated up to AZN 75 million ($44.1 million) in subsidies to cover the difference in wheat and flour product prices as well as grain export duties, Trend has reported.

He noted that Russia, which has been Azerbaijan's major grain exporter since 2021, raised grain export duties.

"This led to an increase in prices of wheat and flour products. Azerbaijani state has allocated up to AZN 75 million ($44.1m) of subsidies to cover this difference," Asadov said.

"But this was before the war. Recent world events and Russia's export ban must be taken into account. However, today it became known that Russia lifted the export ban," he added.

Emphasizing that Azerbaijan has enough grain stocks, the prime minister noted that there will be no problems with 11-12 main export products.

"We believe that peace will prevail and this issue will be resolved," he said.

It should be noted that Rosselkhoznadzor reported that Russia exported 34,090 tons of grain crop to Azerbaijan, Belgium, Germany, Denmark, Kazakhstan, Latvia, Uzbekistan, Georgia and other countries since the beginning of March 2022.

More than 2,960 tons of total exports accounted for wheat, 370 tons for barley, 1,780 tons for flax, and 600 tons for safflower. In addition, over 28,000 tons fell on granulated sunflower meal.

Azerbaijan is a major fruit and vegetable supplier to Russia. The country ranked first in supplies of fresh and chilled tomatoes. In the list of Azerbaijan’s non-oil exports, last year tomatoes ranked third, accounting for $160.2 million.

Azerbaijan and Russia have mutual cooperation in different fields, such as economy, agriculture, customs, communications, high technology, and others. More than 230 intergovernmental and intercompany documents have been signed between the two countries and six "road maps" are being implemented.