Azerbaijan centralizes the procurement of state organizations with food products

Ministry of Agriculture established 3 working groups to form the OJSC

Baku. 24 May. REPORT.AZ/ Azerbaijan will be able to meet its food demand due to the establishment of 'Food Procurement and Supply' Open Joint Stock Company in the country.

Report was told by Firdovsi Fikratov, Chief of Statistical Analysis Department of the Ministry of Agriculture.

'As known, various state organizations (law enforcement agencies, army, penitentiary system, social enterprises) procure food and agricultural products on the account of state budget. Millions of AZN are allocated from the state budget to provide these state organizations with food and agricultural products. Firstly, these funds will be directed towards local entrepreneurs, acting in rural areas, in a centralized manner. As a result, our own farmer section will be formed. They will establish guaranteed production by order on the account of the means, allocated from the state budget. This will be the biggest advantage of the organization. Earlier, these works had been carried out by separate organizations at the expense of funds, allocated from the budget', F.Fikratov said.

Notably, on April 11, 2016, President Ilham Aliyev has signed an order on establishment of 'Food Procurement and Supply' Open Joint Stock Company.

Firdovsi Fikratov said that creation of the OJSC with the support of the state will establish condition to improve situation of farmers directly in the rural areas, to increase income as well as to expand sales opportunities of their products: 'Therefore, mostly local farmers will benefit from this system. All these activities will be carried out transparently. Because both purchasers and sellers will post their information on 'Electronic database'.

According to the Department Chief, as an initial phase, the Working Group, which will solve legal and organizational issues of the OJSC, has been established under the Ministry of Agriculture. Second Working Group has been formed together with the employees of the Ministry of Communications and High Technologies.

As well as, F.Fikratov stressed establishment of third Working Group, consisting of the employees of the Agricultural Ministry, to increase public awareness on the OJSC activity. 

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