Armenian ministry of agriculture to save 1.2 billion drams
16.02.2017,
16:24
Armenia’s ministry of agriculture will save more than 1.2 billion drams in 2017, agriculture minister Ignaty Arakelyan said today.
YEREVAN, February 16. /ARKA/. Armenia’s ministry of agriculture will save more than 1.2 billion drams in 2017, agriculture minister Ignaty Arakelyan said today. He said the company that won a tender for provision of medications for vaccination of cattle agreed to reduce the price to 411 million drams, down from 456 million drams, originally projected by the ministry.
The minister also said that 19 companies from Armenia, Germany, UK and Switzerland had been examined as part of a fertilizer import program . He noted that in view of the high demand and significant price fluctuations, preference was given to the companies, which offer low prices and do not apply for additional loans to finance imports of fertilizers.
Arakelyan named the companies that won the tender for supply of fertilizers- they are Masisi Berutyun, which offers a bag of fertilizer for 6,580 drams , as well as two other companies that offer the bag for 7000 drams. According to minister, bag of fertilizer last year was estimated at 8,700 drams.
He said in 2016, importing companies were provided with 4 billion drams worth low-interest rate loans. The government also released about 2.1 billion drams to subsidize the purchase of fertilizer for farmers.
He said that the government will release this year 900 million drams as fertilizer subsidies for this year, down from 2.1 billion drams earmarked by the government budget. As a result, the government will save about 1.2 billion drams.
According to him, the cost of fertilizer for farmers will not be reduced at the expense of saved money. They will receive fertilizers at the same price of 6000 drams per bag, as in 2016.
"We do not consider it appropriate to reduce further fertilizer prices for farmers, as a research shows that it is more appropriate to support them in leasing agricultural machinery", Arakelyan said, explaining that the fertilizer subsidy program does not include all Armenian farmers.
He also said that the quality of imported fertilizers will be closely monitored and they will be provided only to those farmers who repaid the debt for the previously bought fertilizers. He also said that no subsidies for the purchase of diesel fuel are provided for 2017. He added that the government plans to eliminate subsidies for the purchase of fertilizers in 2018. ($ 1 - 486.56 drams). -0-
The minister also said that 19 companies from Armenia, Germany, UK and Switzerland had been examined as part of a fertilizer import program . He noted that in view of the high demand and significant price fluctuations, preference was given to the companies, which offer low prices and do not apply for additional loans to finance imports of fertilizers.
Arakelyan named the companies that won the tender for supply of fertilizers- they are Masisi Berutyun, which offers a bag of fertilizer for 6,580 drams , as well as two other companies that offer the bag for 7000 drams. According to minister, bag of fertilizer last year was estimated at 8,700 drams.
He said in 2016, importing companies were provided with 4 billion drams worth low-interest rate loans. The government also released about 2.1 billion drams to subsidize the purchase of fertilizer for farmers.
He said that the government will release this year 900 million drams as fertilizer subsidies for this year, down from 2.1 billion drams earmarked by the government budget. As a result, the government will save about 1.2 billion drams.
According to him, the cost of fertilizer for farmers will not be reduced at the expense of saved money. They will receive fertilizers at the same price of 6000 drams per bag, as in 2016.
"We do not consider it appropriate to reduce further fertilizer prices for farmers, as a research shows that it is more appropriate to support them in leasing agricultural machinery", Arakelyan said, explaining that the fertilizer subsidy program does not include all Armenian farmers.
He also said that the quality of imported fertilizers will be closely monitored and they will be provided only to those farmers who repaid the debt for the previously bought fertilizers. He also said that no subsidies for the purchase of diesel fuel are provided for 2017. He added that the government plans to eliminate subsidies for the purchase of fertilizers in 2018. ($ 1 - 486.56 drams). -0-
