Armenia awaiting wheat supplies from Russia

Agriculture Minister Gerasim Alaverdyan assured that despite the global rise in prices for wheat, no drastic increase is expected in Armenia.

The low growth of Armenia’s GDP (4%) was caused by a slump in agriculture, which, according to Armenian Minister of Agriculture Gerasim Alaverdyan, is basically reasoned by decrease in fruit and vegetable harvest.

PanARMENIAN.Net - However, the Minister believes the situation will improve in September-October and certain growth will be recorded specifically in livestock products.

Alaverdyan said vegetable and fruit harvest totaled 60,000-70,000t against 161,000t in 2009. Meanwhile, growth was recorded in stock farm (egg production grew by 30%).

According to updated statistical data, 23% decrease was registered in Armenia’s agriculture in January-July 2010. The total volume of produced agricultural products amounted to AMD 555.7bln in January-December 2009 that is 0.1% lower compared with the same period in 2008.

Minister Alaverdyan assured that despite the global rise in prices for wheat, no drastic increase is expected in Armenia, the country’s Agriculture Minister said.

“The situation is under control,” he said. “We held consultation with seven major wheat importers, who purchased the essential amount of wheat from Kazakhstan and some other countries after Russia imposed restrictions on wheat export. However, Russia will make an exception for Armenia and supply a certain amount of wheat.”

Presently, the price for wheat fluctuates from AMD 80 to 150 depending on the grade. As to opinion that the importers themselves inflated the prices, he noted, “It can’t be true. Importers are interested in emptying their storehouses to buy new lots for a lower price.”

Armenia needs 650-720 thousand tons of wheat annually. In 2010, the harvest totaled 280 thousand tons against 370 thousand reaped last year.

Alaverdyan said that the Ministry has launched a special seed production program.

To implement the program, a working group has been formed, which is in Shirak region to study areas appropriate for seed production. Seeds will be provided to those villagers, who offer at least 3ha of relevant land plot. “We have already received applications for 18,000ha, out of which 5,000ha will be chosen,” he said.

As a result of the program, it is expected that the volume of wheat production will make 300,000-350,000t per year against 150,000-160,000t, what will allow increasing the level of wheat provision in the country from 37% to 55%.

According to the RA State Revenue Committee, 147,852t of wheat at the amount of $36.998mln was imported to Armenia in the first half of 2010 against 126,841t ($32.160mln) during the same period in 2009.

Though prices for grain went up at the global markets as a result of drought, what has affected the price for imported grain to Armenia, bread production remained unchanged in the country. Specifically, bread production totaled 174.2thous. tons in January-July 2010 as during the same period in 2009.

Flour production increased by 18.4%, amounting to 85.5thous. tons. Meanwhile, confectionery production grew by 9.9% in January-July 2010 as compared with the same period in 2009, totaling 6.1thous. tons.

Production of macaroni products increased by 7.2% during the reported period, totaling 1.6thous tons. Cereal production doubled, amounting to 226 tons.

Victoria Araratyan / PanARMENIAN News
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