Despite being the third biggest sphere in Azerbaijani economy after oil and industry, organic agriculture has the largest share in employment. Organic agriculture is an alternative system for conventional agriculture. The main principal of organic agriculture is to achieve sustainable development that ensures healthy life of the producers, natural resources and environmetal protection.
However recently there are serious problems in the country’s agricultural sector due to the sowing of more soils and low productivity. Obviously, such problems are one of the factors that slow down the development of organic agriculture. Regardless of the fact that the state government set agriculture sector as a priority issue for the government policy and signs orders for the allocation of benefits, unfortunately, farmers are unable to feel the consequences. Every year, various activities are being carried out in the field of agro-leasing with subsidies for farmers. However, neither the decree and programs, nor the funds allocated are not satisfactory to solve the problem. Thus, investments in agriculture are reduced in the country due to non-issuance or delay of loans allocated to farmers. This also creates a serious impediment to the farmers’ timely cultivation of land.
According to the agricultural statistics, the actual cost of gross agricultural output in January 2015 was 222.0 million manat. In January, livestock had the share of 97.8% in gross agricultural production whereas crop production had 2.2% share.
The volume of natural production of all agricultural products produced in January 2015 has increased in comparison with the same period of 2014.
In January 2015, agricultural products were exported in the amount of $ 16.7 million and increased by 36.9 percent in value terms compared to the same period in 2014.
The volume of fruit exports as the basis of exports of agricultural products, as well as tobacco raw materials has substantially increased. In contrast, the volume of exports of vegetables in natural decreased compared to the corresponding period of 2014.
In January 2016, compared to 2015, the gross value of agricultural output was 224.2 million manat. In January, livestock sector accounted for 98.2% of the total agricultural production, and plant-growing accounted for 1.8%. Production of both crop and livestock products has increased in comparison with the corresponding period of 2015.
The volume of natural production of all agricultural products produced in January 2016 has increased in comparison with the same period of 2015.
In January 2016, agricultural products were exported in the amount of $ 19.7 million. The volume of exports of agricultural products was increased by 13.5 percent in value terms compared to the same period of 2015.
Compared to the same period of 2015, exports of natural fruits, tobacco raw materials have been decreased, while exports of vegetables, tea and cotton have been increased in natural.
While statistics show a year-over-year increase, the real situation is not satisfactory.
One of the major problems in agriculture is related to sales of agricultural products. Currently, farmers can not sell their products. As a result, even taking advantage of subsidies does not give its results. The product is not sold or sold lower than prime cost, which does not meet farmers’ interest. A farmer who does not get enough money is not interested in planting crops for the next year, and thus slowly experiencing a decline in the country’s economy.
However, the state support to the development of the agrarian sector is gradually increasing in our country and a number of stimulating measures are being undertaken in this area. Efficient use of oil revenues in Azerbaijan has led to the diversification of the economy and the development of the non-oil sector. According to the State Statistics Committee, in January-July 2015, Azerbaijan’s non-oil sector grew by 9% as a result of purposeful measures to diversify the country’s economy.
Diversification of the economy has created favorable conditions for the development of the agrarian sector as all other sectors. Please note that, the agrarian policy founded by national leader Heydar Aliyev is successfully continued by President Ilham Aliyev. It is obvious that, the head of state declared 2015 as “The Year of Agriculture” in Azerbaijan with a decree signed on January 12 in order to stimulate the development of agriculture and accelerate its modernization, to provide a systematic and comprehensive approach to the solution of existing problems in the agrarian sector, effectively involve the state’s administrative and financial resources.
It is enough to note that, Azerbaijan has allocated 596 million 152 thousand manats to agriculture, forestry, fishing, hunting and environmental protection from the state budget of 2015, of which 568 million 688 thousand 675 manats are directly related to agricultural costs. The annual increase in the share of agricultural costs in the state budget enables us to say that in the future Azerbaijan will meet the demand for the essential foodstuffs, as well as become the key exporter of the region in this area.