(MENAFN- Trend News Agency)
BAKU, Azerbaijan, August 16. Global domestic
food price inflation remains high, Trend reports.
Data from March through June 2022 have shown high inflation in
almost all low- and middle-income countries. In 93.8 percent of
low-income countries, 89.1 percent of lower-middle-income
countries, and 89 percent of upper-middle-income countries,
inflation was above five percent, and in many cases exceeded 10
The share of high-income countries with high inflation also
sharply rose, with about 78.6 percent of countries experiencing
high food price inflation. The most affected countries are in
Africa, North America, Latin America, South Asia, Europe and
Central Asia. In real terms, food price inflation exceeded general
inflation in 78.7 percent of 160 countries.
The shocks caused by the situation in Ukraine, the COVID-19
pandemic and the climate have begun to put pressure on the fragile
food supply chain, pushing this issue to the top of the
geopolitical agenda. It's necessary to look for new ways to ensure
food security. This will also entail a shift from dependency to
diversification and from globalization to regionalization.
The global rise in food prices also has affected Azerbaijan,
since the country hasn't yet become 100 percent self-sufficient in
food products. Nevertheless, consistent measures are being taken in
Azerbaijan to achieve this goal, and the results of this activity
can be seen in the figures. The country provides itself with meat
products by 90 percent, poultry meat - by 80 percent, and milk and
dairy products - 85 percent.
The most recent data on agricultural production in the country
have suggested that in the coming years the level of food
self-sufficiency will further increase.
From January through July 2022, the value of all agricultural
products in actual prices in Azerbaijan amounted to 6.39 billion
manat ($3.76 billion), of which 2.9 billion manat ($1.7 billion)
accounted for livestock and 3.48 billion manat ($2.05 billion) for
Agricultural production increased by 3.1 percent, including
livestock products - by 2.7 percent, and vegetable products - by
Among the measures to ensure food security, there should be
noted the decree signed by the President of Azerbaijan Ilham Aliyev
on July 19, 2022 'On a number of measures to increase the level of
self-sufficiency in food wheat.'
In accordance with the decree, at the initial stage, as a pilot
project for food grains produced by persons who have committed
themselves to the production of food wheat on farms using modern
irrigation systems and handed it over to the State Reserves Agency
of Azerbaijan and to flour mills in accordance with the contract,
concluded with the Ministry of Agriculture, starting from 2023, a
subsidy for a period of five years will be applied.
Besides, the state purchase price for food wheat will be
determined annually until August 1, 2022, and in subsequent years -
annually until July 1, given the expenses for production (cost) of
food wheat and the possible profit of the producer.
Along with the above, the Cabinet of Ministers of Azerbaijan
adopted a resolution 'On measures to regulate the export from the
country of a number of basic food products included in the minimum
consumer basket, and goods used in their production'. This decision
also became important and timely for the protection of the domestic
At the heart of the tasks in the field of ensuring food
security, there are six basic principles, especially in the field
of providing basic foodstuffs, including grain.
The basic principle is that in food safety, the focus on the
main products is mainly shifted to local production. This is a
reduction in the cost of production, and an increase in its
quantity and quality.
The second basic principle, which follows from the first one, is
that the government aims to subsidize production, rather than
imports. The third principle is the liberalization of prices for
basic foodstuffs, which is an important incentive for
entrepreneurs. It's also necessary, firstly, to prevent an
artificial increase in prices, and secondly, to ensure the margin
The fight against the unfair competition will also be
intensified. The principle of performance-based subsidies aims to
increase transparency in subsidization and stimulation to
manufacture more products.
Given the rise in prices for food products, 193 million manat
($113.5 million) was allocated to create a reserve in the field of
food security as part of amendments to the state budget for the
Undoubtedly, the liberated lands of Azerbaijan, which have very
favorable natural conditions for the development of agriculture,
will also contribute to increasing the level of food
self-sufficiency in the country.
These territories have historically been leaders in the
manufacturing of quality grain, cotton, livestock, tobacco and
viticulture products. It's profitable to grow cotton, grapes, sugar
beet, and corn in the Aghdam and Fuzuli districts due to high
fertility of the lands in the districts. The mountainous districts,
that is, Kalbajar, Lachin and Gubadli, were historically considered
zones of animal husbandry. At the same time, there are conditions
for the development of fish farming in the liberated territories.
On the other hand, vegetables, melons and fodder crops can be grown
in these areas. Besides, sugar beet can be planted on these lands
and get a good harvest.
At the moment, the most acute issue is the global provision of
grain. In Azerbaijan, the coefficient of self-sufficiency in grain
at the beginning of 2022 was 62 percent. In order to significantly
increase the production of food wheat, a special program has been
developed in the country, and new types of subsidies are being
The country's food security is an integral part of its national
security. Improving the supply of food products to the population
is an important socio-economic issue, the solution of which is of
particular importance for the development of the country. Ensuring
food security of the population, is one of the main directions of
state policy, covering broad national, economic, social,
demographic and environmental issues.
As a result of the effective and timely measures taken, as well
as due to the extensive development of agriculture in the liberated
territories, Azerbaijan will undoubtedly make a big breakthrough in
the field of food security in a short time.
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