President Ilham Aliyev signed a decree on a number of measures to increase the level of self-sufficiency with food wheat.

APA reports that the Decree states that ensuring food security in the Republic of Azerbaijan, including raising the level of self-sufficiency with basic food products, is one of the important directions of the socio-economic policy implemented in the country.

For this purpose, state support mechanisms for the agricultural sector are improved and new support measures based on international experience are implemented:

"Recently, the potential formed in the field of agricultural development in the country, especially the creation of grain farms based on the application of modern technologies, as well as the liberation of lands occupied for many years from occupation, allow the determination of new goals in order to further increase the level of self-sufficiency of the country with food wheat.

Guided by paragraph 32 of Article 109 of the Constitution of the Republic of Azerbaijan, in order to increase the country's level of self-sufficiency in food wheat, as well as to organize the production of food wheat, due to the creation of new regulatory mechanisms that allow for the mobilization of existing resources, taking into account the processes taking place in the global food market, I make a decision:

1. As a pilot project at the initial stage, according to the agreement concluded with the Ministry of Agriculture of the Republic of Azerbaijan, the food wheat produced by the persons who have committed to the production of food wheat in farms where modern irrigation systems are applied and delivered to the State Reserves Agency of the Republic of Azerbaijan and flour mills (hereinafter - suppliers) crop subsidy should be applied to food wheat for a period of 5 years starting from 2023.

2. The Cabinet of Ministers of the Republic of Azerbaijan:

2.1.

Based on the proposals of the Ministry of Agriculture of the Republic of Azerbaijan and the State Reserves Agency of the Republic of Azerbaijan, to submit proposals to the President of the Republic of Azerbaijan within three months regarding the improvement of the grain legislation, including taking into account paragraph 2.3 of this Decree, regarding the state supply of food wheat;

2.2.

Based on the proposals of the Ministry of Agriculture of the Republic of Azerbaijan, submit proposals to the President of the Republic of Azerbaijan within three months regarding the improvement of the credit mechanism and the implementation of the state guarantee, which are given on preferential terms for the creation of modern farms and the purchase of modern irrigation systems to food wheat producers;

2.3.

determine the state supply price of food wheat by August 1, 2022, and by July 1 every year in the following years, taking into account the production costs (cost) of food wheat and the producer's possible profit;

2.4.

annually submit a report to the President of the Republic of Azerbaijan regarding the analysis of the results of the implementation of the measures provided for in this Decree;

2.5.

resolve other issues arising from this Decree.

3. Ministry of Agriculture of the Republic of Azerbaijan:

3.1.

ensure the conclusion of agreements on the production of food wheat with the farms provided for in Part 1 of this Decree;

3.2.

To take measures to apply product subsidy to food wheat produced in the farms provided for in part 1 of this Decree and delivered to suppliers in accordance with the "Rule on Subsidizing Agricultural Products Production" approved by Decree No. 759 of the President of the Republic of Azerbaijan dated June 27, 2019 ;

3.3.

"Agrarian under the Ministry of Agriculture of the Republic of Azerbaijan" approved by the Decree of the President of the Republic of Azerbaijan dated December 19, 2018 No. Ensure the application of concessions in accordance with the "Rule of using the funds of the Credit and Development Agency".

4. The State Statistics Committee of the Republic of Azerbaijan should announce the average import statistical indicator for each month based on the price of food wheat imported to the Republic of Azerbaijan.

5. According to part 1 of this Decree, the Agrarian Subsidy Council should determine the coefficient in accordance with the "Regulation on Subsidization of Agricultural Products Production" approved by Decree No. 759 of the President of the Republic of Azerbaijan dated June 27, 2019, for the application of product subsidy to food wheat, and in cases where the average import statistical indicator is lower than the state supply price during the product delivery period, update the product subsidy coefficient in order to compensate the manufacturer for the difference.

6. Azerbaijan Melioration and Water Management Open Joint Stock Company should take measures to improve the water supply of farms provided for in this Decree.

7. The Ministry of Finance of the Republic of Azerbaijan should ensure that the funds required for the financing of the measures provided for in clauses 3.2 and 3.3 of this Decree are provided for in the state budget projects of 2023-2028.