Azerbaijani Agriculture Ministry says increase in bread prices is unfounded

Increase in bread prices in Azerbaijan are unfounded because the country's grain needs are met fully. The country does not face any shortages, Head of the Azerbaijani Agriculture Ministry's Plant Products Production and Processing Department Sabir Valiyev said.

Prices on bread rose from 0.3 to 0.4 manat per loaf in Baku on Nov. 18. The price on flour has also increased. He added that 3 million tons of grain were gathered last year from 157,000 hectares of land, but the figure fell to 981,000 tons this year.

Azerbaijan's total grain demand is 3 million tons. Two million tons have already been provided via local production and more than 1 million tons of grain have been imported.

However, one possible factor affecting prices is the unresolved issue of abolishing VAT on grain imports, he said.

The ministry has already submitted a proposal to the government to abolish VAT on grain.

Azerbaijan has imposed VAT on grain imports since 2010. The tax is imposed at 18%.


/Trend/