Azerbaijan Introduces Major Agricultural Equipment Concessions To Boost Sector

(MENAFN- AzerNews) By Zara Araz

Azerbaijan is making a significant investment in its agricultural sector through newly introduced concessions, aimed at enhancing the accessibility of modern agricultural equipment. This strategic move is part of a broader initiative to modernize agriculture and increase productivity in the country.

The recent changes were formalized through an amendment to the "Rules for Using the Funds of the Agrarian Credit and Development Agency under the Ministry of Agriculture." This amendment was enacted by a decree from President Ilham Aliyev and outlines several key concessions.

One of the most impactful aspects of the decree is the 60 percent discount on the customs value of imported agricultural equipment. This discount specifically applies to modern irrigation systems that are produced locally, thus reducing the overall cost for farmers and agricultural businesses.

The Ministry of Economy has established specific criteria for the application of these discounts. This ensures that the concessions are targeted and that only equipment meeting certain standards qualifies for the reduced customs rates.

The discount amount is covered by the state budget of Azerbaijan. The Agrarian Credit and Development Agency will oversee the disbursement of these funds, ensuring that the discounts are effectively implemented and that the equipment is made accessible to local agricultural producers through relevant organizations.

By significantly reducing the cost of modern irrigation systems, these concessions aim to make advanced agricultural technology more accessible to Azerbaijani farmers. Modern irrigation systems are critical for improving water efficiency and crop yields, especially in regions where water scarcity can limit agricultural productivity.

Access to modern equipment is expected to enhance overall agricultural productivity. As farmers adopt more efficient irrigation systems, they can achieve higher crop yields and better manage their water resources. This, in turn, could lead to increased agricultural output and potentially boost the sector's contribution to the national economy.

The focus on locally produced equipment aligns with the broader economic goals of fostering domestic industries. By incentivizing the use of locally manufactured systems, the policy supports local manufacturers and helps stimulate economic activity within the country.

The introduction of these concessions reflects a long-term commitment to agricultural development in Azerbaijan. Modernizing agricultural practices and infrastructure is crucial for building a resilient and sustainable sector capable of meeting future challenges, such as climate change and increasing food demands.

The new concessions for agricultural equipment represent a significant step forward in Azerbaijan's efforts to modernize its agricultural sector. By making advanced technology more affordable and accessible, the government aims to enhance productivity, support local industries, and promote sustainable agricultural practices. As these measures take effect, they are expected to drive positive changes across the agricultural landscape and contribute to the sector's growth and development.

MENAFN12082024000195011045ID1108543925