BAKU, Azerbaijan, October 9. A
draft law regarding product certificates, which would enable
farmers to secure financing before the start of production based on
obligations related to their future harvest, has been submitted to
the Azerbaijani Parliament for discussion, Chairman of the Agency
for Agricultural Credit and Development (AACD), Yalchin Jamalov,
said at the 3rd International Agro Business Forum, held in Baku on
Friday, Trend's
correspondent reports from the event.
He noted that the proposed mechanism will expand opportunities
for the pre-financing of agricultural production. Depending on the
type of certificate, the producer is expected to fulfill their
obligation by providing either cash or produce.
According to Jamalov, the new instrument will help strengthen
trust among farmers, suppliers, and financial institutions, and
increase access to finance within the agricultural sector.
The agency chairman noted that plans are also in place to
provide a portion of the planting subsidy as an advance payment to
farmers who meet established criteria. This approach will help
address funding needs that arise at the start of the season.
"The interest subsidy mechanism, which has already been
implemented, facilitates access to credit resources for the
production of specific annual crops. Under this mechanism, AACD
covers the interest on loans, granted for up to one year to finance
the purchase of production inputs and agrotechnical services, from
the state budget, subject to established conditions," he said.
Jamalov emphasized that this support reduces farmers' borrowing
costs and creates conditions for the timely implementation of
agrotechnical measures and the channelling of private financial
resources into the agricultural sector.
He highlighted that state support has also been expanded to
promote water conservation, technological upgrades, and the
reduction of crop losses. The measures include higher subsidies for
farms using modern irrigation systems, incentives for laser land
leveling, and tiered concessions for machinery and irrigation
equipment.
According to the agency's chairman, support for produce storage
infrastructure, such as silos and cold storage facilities, as well
as incentives for solar panels used in agricultural production,
expands investment opportunities for entrepreneurs.
Jamalov added that the expansion of subsidies for produce
supplied for processing, new support mechanisms for milk production
and intensive livestock farming, and planned product subsidies for
fisheries and aquaculture serve to improve the supply of local raw
materials to processing enterprises and generate greater
value-added within the country.
