39.4 bln drams to be allocated for agricultural programs in Armenia  in 2026 - Minister

ArmInfo.  During the draft state budget debates in the National Assembly committees on November 4, RA Minister of Economy Gevorg Papoyan stated that 39.4 billion drams will be allocated for agricultural programs in Armenia  in 2026. 

The Minister noted that this amount will be used to implement five  programs. Agricultural allocations constitute the majority of the  budgetary allocations for the entire RA Ministry of Economy,  amounting to 74.5 billion drams. Of the total budget funding, 10.1  billion drams will be allocated for the agricultural development  assistance program. Specifically, 5.3 billion drams are planned for  the implementation of four major investment programs launched last  year: the construction of two large poultry farms, one pig breeding  farm, and one cattle farm. Additionally, 3.1 billion drams are   planned for the purchase of agricultural raw materials, which will  benefit 50 beneficiaries. These include grapes, tomatoes, milk, and  other items. Procurement companies will receive interest subsidies on  loans taken out to purchase these raw materials. Also, 700 million  drams will be allocated to continue interest payments on agricultural  loans previously received by the country's farmers. 311 million drams  are planned to support the State Non-Profit Organization "State  Programs for Assistance to Agriculture," and 264 million drams are  planned for the development of viticulture and winemaking through a  respective fund.

Papoyan also noted that a pilot agricultural risk insurance program  will be implemented in cooperation with the German government. The  German bank KfW has allocated a 200 million dram loan to Armenia for  this program. An additional 100 million dram will be used for  agricultural land consolidation. Other activities are also planned.

The Minister also stated that this year has seen a significant  increase in exports of various agricultural products. The increase  ranges from 10% to 200% for various types. Research conducted to  determine the reasons for this significant increase revealed that,  with the exception of apricots,  accounting for 30% of exports, all  other fruit and vegetable products are the result of the government  policy. For example, 99% of all exported tomatoes are grown in  greenhouses, with the executive body paying 8% to 10% of the loans  for the establishment of greenhouses. The same applies to other  crops, including flowers. Intensive orchards, for  which the  government is implementing a number of preferential programs, also  contribute significantly to export  growth. Until recently, Armenia  imported pears, but now it exports this agricultural production,  which is produced in intensive orchards.