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Armenian agriculture ministry urging processing enterprises to repay their debts to farmers before Jan 1, 2012

03.11.2011, 02:59
Armenian Agriculture Ministry has sent letters to all the processing enterprises of Armenia urging them to pay their debts to farmers before the end of this year, Deputy Agriculture Minister Robert Makaryan said.
YEREVAN, November 2. /ARKA/. Armenian Agriculture Ministry has sent letters to all the processing enterprises of Armenia urging them to pay their debts to farmers before the end of this year, Deputy Agriculture Minister Robert Makaryan said.

He said that contract-based procurement culture is being introduced in the country. Some 40 companies buying grapes have already started paying their debts to farmers. Of them, 20 companies have already repaid their debts, and the other 20 companies have repaid them partially.

Makaryan said that the ministry is conducting an everyday monitoring, which shows that AMD 15.2 billion of AMD 16.8 billion (90.5%) have already been paid for the purchased grapes. The remaining amount will be paid before the end of this year.

Some 33 of 39 processing enterprises have completely repaid their debts, others partially.

Of AMD 2.8 billion, 2.5 billion has been paid.

Makaryan said that the ministry set this deadline to prevent repetition of the previous year’s situation, when three companies had overdue debts toward farmers as of May.

He said that the 2010 debts are already paid and expressed hope that all the companies will pay the money they owe to farmers before expiration of the deadline.

According to the National Statistical Service of Armenia, agricultural output totaled AMD 169 billion in September 2011 – 18.6% year-on-year growth.

Armenia has 30 canning factories, 20 wineries, more than 250 milk purchasing and processing factories, 70 meat-processing factories and four tobacco-processing factories.

Aggregate capacity of the Armenian enterprises is 285,000 tons, of which 172,300 tons (60.4%) are tinned vegetables and 111,700 tons are tinned fruits and juices. However, only 20% of this capacity is used in practice. --0---