15:48 - 8.07.2019

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July 8, Fineko/abc.az. Tobacco producers from Sheki, Zagatala, Gakh and Balaken districts of Azerbaijan met with representatives of the Azerbaijan Industrial Corporation (ASK) and Azertutun LLC.

ASK reports that at the meeting the tobacco producers asked to increase the subsidies for their products.

"The farmers asked to increase the periods of given subsidized loans, subsidies payable for the given raw materials, but also on the improvement of provision of seeds, machinery and water," ASK informed.

Following the meeting, Azertutun’s reps made a decision to establish advisory councils of five members in each district for creation of closer contacts between farmers and increase efficiency.

Currently, subsidies in the amount of 0.05 manats per kg of dry tobacco and for every 10 kg of raw tobacco are given to producers for sale tobacco to legal entities engaged in tobacco processing and individuals engaged in business activities.

In 2018, Azerbaijan produced 2,700 tons of dried tobacco and 22,500 tons of moist tobacco. At the same time tobacco producers received subsidies for AZN 247,400.

Azerbaijani President Ilham Aliyev approved in December 2018 the procedure of the use of funds of the Agency for Agricultural Loans & Development.

In compliance with the rules the Agency's funds can be used to finance projects aimed at improving the production, processing, storage and sale of agricultural products, innovative projects for the agro-development of regions, projects aimed at improving production facilities, as well as to finance their preferential sale and leasing, livestock development projects.

Micro-loans are given for up to 2 years, small and medium-sized loans for up to 3 years, and large loans for up to 5 years. The grace period for loans will be up to 12, 18 and 24 months respectively.

The Agency gives loans to authorized organizations at 2% per annum. The interest rate for entrepreneurs should not exceed 7% per annum.