Explanation of the decision to improve the provision of subsidies

https://cabmin.gov.az/az/document/4175/

The execution of orders given by the relevant decree of the President of the Republic of Azerbaijan is envisaged by the Resolution of the Cabinet of Ministers № 518. Amendments to this decree imply stability, sustainability and ease of granting.

Thus, according to the previous rule, subsidies were provided separately for each agricultural product, and one-time orders were signed as necessary for each subsidy. For example, orders for crop production will be signed, and a one-time subsidy of 100 manat per hectare will be paid to the farmer. Separate orders were also signed for animal husbandry, beekeeping and fishing. Tobacco growing and cotton growing were generally not included in this list.

Now, with the adoption of a single rule, 1) in addition to signing a separate order in each region, and 2) the need for a new decree is periodically eliminated, and 3) tobacco growing and cotton growing. In other words, there is no need to re-sign each order separately. As a result, a one-time mechanism will be created covering all areas, eliminating duplication in the regulatory framework and creating a single system.

This solution also creates a new, more stable and long-lasting mechanism for issuing plastic cards.

Until now, three-year plastic cards where subsidies have been paid are only available to crop producers, including tobacco and cotton producers. Workers who worked in animal husbandry field were not provided with three-year cards. The new Rule provides for the issuance of three-year plastic cards for subsidies to farmers, along with crop production. It provides stability and simplicity of government support to animal husbandry workers.

The third important point is that until recently, farmers had to contact the Ministry of Agriculture and the Ministry of Finance, that is, in two cases, separately, to receive plastic cards. Now they will be applied to only one copy - the Agency for Agro Credit and Development under the Ministry of Agriculture. As a result, time is saved, there is no need for additional clerks and expenses.

This is a new single rule:

- create permanent mechanisms of state support for cotton growing, tobacco growing and animal husbandry workers;

- strengthen state support for agriculture;

- form a stable and easily forecasting mechanism of state support;

- simplifie documentation in the process of subsidizing;

- provide farmers with a clear view of their farms for up to 3 years;

- reduce the risk of investment in agricultural production;

- form a favorable environment for additional investments with guaranteed state support for 3 years.

Link: https://cabmin.gov.az/az/article/647/