"There are 2 main reasons for the continuous increase in the price of food wheat in world markets."

Zaur Ibrahimov, chairman of the "Prioritet" Center for Social and Economic Research Public Union, said this in his statement to APA.

Zaur Ibrahimov said that the first place among these reasons is the uncertainties in the world economy related to the COVID-19 pandemic, constant pressure on the supply chain, the creation of reserves in excess of demand by a number of countries, in other words, the disproportionate increase in demand: "The second place is Russia and Ukraine. restrictions in global trade due to the military conflict between decreases, prices rise.

According to the International Grains Council (IGC), 8.9% of global wheat exports in the 2020/2021 season (16,

9 million tons) fell to the share of Ukraine.

According to forecasts of the UN Food and Agriculture Organization (FAO), overall global production is expected to decline in 2022.

In Russia, which is one of the main exporting countries, export tariffs have been applied since February 2021, and this is still in force.

In order to develop the agrarian field, increase production and stimulate producers of agricultural products (including food wheat) in the country from paying profit, income, value added tax, simplified system tax and property tax on objects used in the process of activity, excluding land tax, in 2014. was released for 10 years from January.

The President of the Republic of Azerbaijan signed the Decree dated July 19, 2022 "On a number of measures to increase the level of self-sufficiency with food wheat" in order to increase the level of self-sufficiency, increase local food wheat production and reduce dependence on imports.

According to the decree, the production subsidy for food wheat handed over to the State Reserves Agency and flour mills for a period of 5 years starting from 2023, the improvement of the credit mechanism and the application of state guarantees to food wheat producers with preferential conditions for the creation of modern farms and the purchase of irrigation systems, as well as the provision of water in the relevant farms improvement measures are planned.

In accordance with the "Rule on subsidizing agricultural production" approved by the Decree of the President of the Republic of Azerbaijan dated June 27, 2019, the Agrarian Subsidy Council decided to provide a 210 manat seed subsidy per hectare for wheat crops in 2022.

Starting from March 2020, a subsidy of 6.2 million manats was allocated to the interest calculated on the 58.2 million manat loan allocated to food wheat suppliers within 12 months. By the Decision of the Cabinet of Ministers dated September 13, 2021, the subsidy period was extended from 12 months to 24 months. and additional financing of 7.3 million manats was allocated to the interest calculated on loans for the mentioned period.

At the same time, in order to reduce the negative effects of the increase in the import price of food wheat on the price of flour and flour products sold in the country, a total of 73.7 million manats of subsidy was paid to 37 business entities for the flour sold during the period from February 1 to December 31, 2021. .

Zaur Ibrahimov noted that at the beginning of this year, the coefficient of self-sufficiency in wheat in Azerbaijan was 62 percent.

As a result of the measures implemented by the state, it is planned to increase the production of food wheat: "The initial goal is to increase the level of self-sufficiency with food wheat to 80 percent within 3-4 years.

The situation today is that there is not only the price factor in the markets, but also the grain scarcity factor.

As a result of the Russia-Ukraine conflict, many countries are physically unable to provide their population with wheat and grain.

However, there is no problem in this field in Azerbaijan.

As a result of agreements reached with Russian partners, the required amount of grain is exported to Azerbaijan.

Irrigation projects, taking proper agrotechnical measures to harvest more crops in the available fields in the coming years,

as a result of the provision of subsidies and other measures, a significant increase in productivity will be achieved.

Sowing and harvesting are also being done on the freed lands.

This year, grain was planted on 50,000 hectares, and the harvest is already nearing its end.

At least 100,000 hectares will be released for grain cultivation on the condition that all modern agrotechnical measures are taken on the freed lands, including proper organization of irrigation issues.

In the future, the products to be grown in Karabakh and East Zangezur will play a big role in fully ensuring our food security."

At least 100,000 hectares will be released for grain cultivation on the condition that all modern agrotechnical measures are taken on the freed lands, including proper organization of irrigation issues.

In the future, the products to be grown in Karabakh and East Zangezur will play a big role in fully ensuring our food security."

At least 100,000 hectares will be released for grain cultivation on the condition that all modern agrotechnical measures are taken on the freed lands, including proper organization of irrigation issues.

In the future, the products to be grown in Karabakh and East Zangezur will play a big role in fully ensuring our food security."

The chairman of the "Prioritet" Center for Social and Economic Research Public Union reminded that at the beginning of this year, flour producers adjusted the price of flour to the average import price of food wheat ($340) and the price of flour was lower than the level indicated until the harvest-supply period of July-August 2022. (35.90 manats in a 50 kg package) declared that they would mobilize all their efforts so that the price of flour would not rise above the adjusted price level until the period of 2022. Although there was an increase in the price of food wheat, there was no increase in the price of flour.However, the growth trend and price pressures continue in the world market.The expert also presented the comparative price of flour and bread in a number of geographically close countries based on information obtained from reliable Internet resources and manufacturers: