Armenia to raise agricultural production competitiveness at international market

PanARMENIAN.Net - To revive the business, it was decided to grant the companies importing fertilizers and farming machines exemption from VAT. Besides, relations between the suppliers and processing companies will henceforth be regulated by agreements.

There is hope that in the near future the capabilities of processing companies thanks to the measures taken by the government, specifically backing of agricultural loans. Establishment of processing industry in the country should be followed by a second stage (which is no less important) – improvement of production capacity, what will allow to lower the prime cost and raise Armenian agricultural production at the international market.

Companies engaged in hothouse market-gardening held a protest action in front of the government building demanding measures to be taken against contraband import of vegetables from Turkey. The protesters called for preferential terms for the sale of their products and toughen conditions for the import of Turkish vegetables.

According to experts, high price for local vegetables is explained by the increased cost of gas and fertilizers. The monitoring conducted by the Armenian anti-monopoly body - the State Commission for Protection of Economic Competition (SCPEC) - showed that 1 bag of fertilizers costs AMD 10 000 on the average. The SCPEC pledged to look into the situation and secure a lower price.