Azerbaijan announces measures against rising food prices

The rise in inflation is mainly due to a significant increase in food prices in the world market, as well as high inflation in the countries that are our main trade partners.

Deputy Economy Minister Sevinj Hasanova made the remark at a joint session of the parliamentary committees on economic policy, industry and entrepreneurship, labor and social policy during the discussion of the draft law "On Amendments to the Law of the Republic of Azerbaijan on the State Budget for 2022" (first reading), APA reports.

She said that continued disruptions in the global consumer supply chain as a result of the pandemic, especially supply disruptions and rising energy prices as a result of the conflict between Russia and Ukraine in recent months have led to an increase in food prices in the world: "According to the Food and Agriculture Organization (FAO), world food prices rose by 18% in January-May this year and by about 23% over the past year, which is the highest rate. The policy carried out in the partner countries, their introduction of export bans on a number of goods, tariffs, and duties are among the reasons for rising food prices. In order to prevent the negative impact of a sharp rise in global food prices on business activity, well-being, and purchasing power of the population, urgent anti-inflationary measures were taken.

In this regard, in February the Cabinet of Ministers signed a correspondent order. According to the decision of the Cabinet of Ministers, the production of a number of goods has been exempted from duties. Proposals for the exemption of these products from value-added tax have been prepared and submitted. In addition, the State Service for Antimonopoly Control and Supervision of the Consumer Market under the Ministry of Economy took the necessary measures to prevent price violations on buckwheat and bread. Also, in order to prevent the possible negative impact of global processes on the food security of our country, the Cabinet of Ministers adopted resolutions to regulate the export of a number of food products included in the minimum consumer basket."