ArmInfo. Starting from 2018, the Armenian Government will fully quit the projects on provision of fertilizers and diesel fuel to farmers at preferential prices, Armenian Agriculture Minister Ignaty Arakelyan said at a press conference in Yerevan on Feb 16.
He said that the Government is going to focus its attention on enhancement of the agricultural production efficiency. Nevertheless, the supply of fertilizers does not cover the entire republic. 19 companies from Armenia, Germany, England, Switzerland, Russia, Iran took part in the tender on fertilizer supply in 2017. The main requirements for the participants were the high quality and the low price. The winners of the tender are three companies - Masis Harvest (which offered 6,580 AMD per sack), Donskoy Agrocenter Trade House (7 thsd AMD per sack) and Varabn Group (7 thsd AMD per sack). Due to the price reduction, nearly 1.2 bln AMD state funds will be saved.
Last year importers were provided with a 4 bln AMD loan at low interest rates to supply fertilizers. Another 2.1 bln AMD was spent on subsidizing. There will be no loans in 2017 and the amount of subsidies will be 900 mln AMD, which will allow retaining the fertilizer prices at last year's level. This means that the farmers will pay 6,000 AMD for 1 sack of mineral and phosphoric fertilizers.
The minister stressed that the mechanism of distribution of fertilizers among the farmers has undergone no changes: the importer signs contracts with the rural administrations, which distribute the fertilizers among the farm enterprises. He added that this year the enterprises, which have not repaid their debts, will receive no fertilizers. The legal aspect of the issue will be discussed with lawyers.
In 2017 there will be no subsidies for diesel fuel.
