GAS PRICE CAUSED FERTILIZER INCREASE

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[04:45 pm] 06 April, 2006

The impact of the gas price increase on the RA agriculture is already
evident. The price of the necessary fertilizer improved mainly from
Georgia, Russia and Ukraine has gone up.

“The increase is unprecedented,” the Chief of the Plant Cultivation,
Forest and Plant Protection Board of the RA Ministry of Agriculture
Garnik Petrosyan announced while speaking of the nitrogen fertilizer
high price. As a result of this increase the price of one fertilizer
bag may become from 5000 – 5200 AMD and even more. Taking into account
the financial state of the Armenian peasants the Government decided to
subsidize the fertilizer importers so that the imported and increased
fertilizer is sold in the Armenian market with the prices of last
year. The process of subsidization was realized at the expense of 294
million AMD. As a result, the fertilizer will be sold to the farmers
with the former price – 74 thousand AMD per a ton.

The observations of the Agricultural Ministry revealed that
the-quantity of autumn sowing in 2005 decreased about 20 – 24 thousand
acres in comparison with the previous year. This is determined by the
vacillation of grain prices as a result of which the peasant either
had a little income from the cultivated land or a loss at the end of
the year.

“There seems to be certain stabilization in the market,” says
Mr. Petrosyan who foresees that, willingly or unwillingly, there will
be procurement price increases by Russia and Ukraine. In order to
soften the effects of the increase the works of spring sowing have
already started in the Republic. The survey of the Ministry revealed
that the lands of spring grain cultivation will increase by 15 thousand
acres in comparison with the previous year.

The lands of corn cultivation outnumber the quantity of the previous
year in all marzes of the country. By the way, yesterday many lands
lay under snow because of the snowstorm, but according to the Ministry
there aren’t cases of freezing so far. The Ministry is concerned with
the coming overflowing which is foreseen in April and May. But the
Ministry takes measures to combat it.

From: Emil Lazarian | Ararat NewsPress