The impact of direct subsidies on the development of the lemon growing sector in Azerbaijan

Anar Hatamov
Department of Economics of the Agricultural Sector, Azerbaijan State Agricultural University (ADAU), 450, Ataturk Avenue, Ganja city, Azerbaijan

Abstract

Hatamov, A. (2024). The impact of direct subsidies on the development of the lemon growing sector in Azerbaijan. Bulg. J. Agric. Sci., 30(3), 396–400

As one of the citrus crops, lemon growing is among the comparative advantage sectors of the agricultural sector of Azerbaijan, particularly in the southeastern part of the Lankaran-Astara Economic Region. Agriculture plays an important role in the provision of food security, the livelihood of rural populations, the balanced development of the regions, and the diversification of the economy. In the frame of agricultural policy measures, agricultural producers have not been taxpayers since 1999 (excluding land tax) and have been provided direct and indirect subsidies.
In order to increase agricultural production in the country, various supporting mechanisms have been launched. Since 2019, subsidies have been differentiated by areas, and base amounts have been determined. At the same time, an electronic agricultural system has been created in order to increase transparency and efficiency with the state support of the agricultural sector (Hatamov, A. et al. 2022).
Forms of state support in the agricultural sector can be grouped as direct payments to farmers (according to the cultivated area, per animal, or means of production), price support (through market intervention), crop insurance, credit, marketing, irrigation water, etc. subsidies, export subsidies, as well as import quotas and tariffs, and non-tariff regulations (Fikratzade, F. 2020).
Contribution to innovative development in agriculture, as well as in the citrus growing sector through stimulus programs, including direct payments for intensive orchards, is at the center of the agricultural policy of the government.
The article examines the impact of direct subsidies on the development of the lemon-growing sector in Azerbaijan. The research was carried out in the frame of the “EU Support to Lankaran-Astara Economic Region of Azerbaijan Project,” and the author is the national expert on the value chain assessment of the lemon growing sector in Lankaran district of Azerbaijan. The project aims to enhance the competitiveness and value-added of the fruit and vegetable sector of the Lankaran-Astara economic region, which also supports the elimination of the negative economic consequences of the COVID-19 pandemic through the establishment of a modern network of local economic and community cooperation hubs in the fruit and vegetable sub-sectors. (EU, 2021).

Keywords: Azerbaijan; agriculture; lemon growing; innovative; subsidy; intensive; yield
JEL classification: Q12

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