DEVELOPMENT PROGRAMMES BY AGRICULTURE

NKR Government Information and
Public Relations Department
January 20, 2009

Today, the first NKR Government session of 2009, chaired by the NKR
Prime Minister Ara Haroutyunyan took place.

With the first agenda issue the Executive affirmed the programme
of stable development strategy of the NKR agriculture. Presenting
the document, the Minister of Agriculture A.Tsatryan noted that
the programme was worked out at the department headed by himself,
then it was perfected at the RA Ministry of Agriculture, and
underwent a stage of thorough discussions in the circles of the NKR
NA deputies and farmers. According to the Minister of Agriculture,
the anticipated arrangements will be financed not only by means of
the State Budget but also on account of investments, extra-Budget
means and other sources. According to the affirmed programme, the
strategy presents main directions of the state policy on development
of the NKR agriculture within the period by 2015. Particularly,
a task is set to contribute to raising the level of food provision
and to increasing the incomes of the rural population by creating
favourable conditions for the activity of those engaged in agriculture.

Touching upon the programme, the Prime Minister noted that the
agricultural indices planned for 2015 are far enough from the results
being recorded in the world economy at present. By the estimation of
the Head of the Government the NKR agriculture is on a very low level,
and, first and foremost, desirable successes must be achieved in this
sphere, which will give an opportunity to overcome the general social
and economic difficulties. The Prime Minister announced that they
will not confine with the outlines of the programme, new programmes
dictated by the contemporary economic demands will continually be
implemented. He reported that, for example, works aimed at extracting
bio-fuel from the local raw material are anticipated.

Within the context of the overall development of agriculture the NKR
Government adopted two more programmes at the session. One of them
concerns the problem of increasing the crop yield of grain plants in
Artsakh. In 2009, at least 50 thousand hectares of arable lands of
grain plants are outlined to be under crop. Till 2012 they are to be
expanded and will reach an area of 51.5 thousand hectares. A special
place in the programme is allotted to the problem of irrigation. In
2015 it is anticipated to have about 15 thousand hectares of irrigable
land in the Republic.

In concern with this agricultural document the Prime Minister
A.Haroutyunyan noted that, first and foremost, the Government sets
about developing the branches, which are more profitable and for which
there is a sufficient realization market. An emphasis is put on the
intensive production and the primary aim is to achieve reduction of
the cost price of the products.

According to the information of the Prime Minister, programmes for
cattle-breeding, fruit-growing and other branches are being worked
out as well. An importance was attached to developing poultry farming,
sheep-breeding and rabbit-breeding, branches that require comparably
less expenses and are profitable.

With the third programme presented by the Minister of Agriculture the
Executive affirmed the main directions of developing agriculture in the
NKR Hadrout region’s Banadzor sub-region in 2009-2013. The mentioned
sub-region involves 7 communities including 15 villages. The main aim
of the programme is to create necessary prerequisites for the efficient
use of the land, work, material and technical resources available
in the region, for gradual improvement of the vital conditions of
the population, for reducing poverty, reducing and preventing the
emigration of the population.

Additionally elucidating this subregional programme, the Prime Minister
A.Haroutyunyan underlined that the Government follows the requirement
of proportionate territorial development and will not be satisfied with
the solution of problems of agricultural significance only, although
that very problem is of top-priority importance. The major part of
population in Banadzor sub-region is not engaged in agriculture,
though favourable conditions for that are available. People must be
involved into the agricultural activity, and the state will support
to construct social and cultural units there and to reestablish the
infrastructures,- A.Haroutyunyan reported. He informed the members
of the Government that in future such a programme will be completed
for Martakert region’s Maghavuz sub-region as well.

At the session the Executive adopted a resolution concerning the
state allowances, and arrangements spurring birthrate and increasing
the quantity of families having many children. It was defined that
on account of the State Budget state allowances are paid to separate
groups of citizens. They are calculated by the product coefficient
stipulated by the basic quantity of the state allowance, the place
of person’s residence and his state. In the case of a child’s birth
one-off allowance, equal to the product coefficient stipulated by the
basic quantity of the allowance and the successive order of the child
born, is paid to the parent. A fixed deposit, by name of the third
and each next child born in the family, is opened in the bank. 6000
drams was defined to be the basic quantity of state allowance, 100
thousand drams – the basic quantity of birth allowance.

Appointment and payment of one time maternity aid, as well as the
order of opening of overdue credits were affirmed. By the Prime
Minister’s instruction the Ministry of Social Welfare will also
perfect the order of rendering merit pensions and submit it to the
Government’s affirmation.

After concerned discussions, the resolution draft on affirmation of
state order on capital investments to be implemented at the expense of
the state budget means, was approved. This year 11 mlrd 935 mln and 200
thousand drams capital construction is envisaged. The affirmed document
contains detailed specification of units to be constructed and repaired
according to regions and spheres. According to the Prime Minister’s
clarification, this year volumes of construction in Artsakh will be
greater than it is recorded in the programme of the state order,
additionally considerable works will be carried out on account of
other sources, particularly, in the sphere of house construction. And
thus, wide range state assistance will be rendered to the families
of soldiers, perished in Artsakh War, and those having many children.

The Executive had introduced changes and additions into the NKR
Government resolution N101 "On Affirmation of Order on Provision
State Assistance for Purchasing Flats and Private Houses by Banks’
Hypothecary Crediting". This way the ranges of state assistance to
citizens being in need of hypothec will widen. More families and
persons can get use of the programme. With regard to the issue,
the Prime Minister had noted that during the passed one year many
new questions arose some of which were reflected in the affirmed
changes and additions. It is necessary to bring to a condition that
gradually more and more citizens have an opportunity to take advantage
of hupothecary crediting.

At the end of the session the Head of the Government gave brief
clarification concerning personnel changes. In particular, in view
of the appointment of the Minister of Finance S.Tevosyan both Vice
Prime Minister it was noted, that it is preconditioned by complicated
financial and economic situation: "We are at the verge of force majeure
situation and we are in pressing need of realization of purposeful
financial management", A.Haroutyunyan stated. He had instructed heads
of state departments to do only paramount expenses, being guided with
regime of economy during the forthcoming 4-5 months.

The Prime Minister Expressed gratitude to A.Tsatryan for the work
executed at the post of Vice Prime Minister.

* * * Outright after completion of the session, the Prime Minister
A.Haroutyunyan had convoked a conference with heads of regional
administrations and A.Tsaturyan’s participation. The Prime Minister
had instructed those present to thorough study of new agricultural
programmes adopted by the Government recently and to realize
large scale activities among the rural population strengthening
operative management in communities. Criticizing the work of regional
administrations, A.Haroutyunyan demanded that works with land users
be activated: it is necessary to cultivate more arable lands and to
receive more crops.

At the conference, the Minister of Agriculture had announced data
about forthcoming spring sowing. It was noted that serious state
assistance will be rendered to those, cultivating spring sowing
cultures, in particular, maize. The problem of frost and hail-bitten
vineyards was touched upon as well: it was resolved to exempt their
owners from rent payments for a one year period and to render them
interest-free credits within a two year term.

The problem of management of Banadzor and Kovsakan sub regions
(Kashatagh region) was also touched upon, the form and order of the
responsible persons’ works’ organization were specified. In 2009 300
mln drams are foreseen for sub regional programmes.

The problem of village communities’ replenishment with agricultural
staff was also discussed. This year the Government anticipates
involving about 80 specialists into the sphere’s activity. They will
be examined and retrained.

The Prime Minister informed the participants of the conference that
by the end of the year the Government will also start cattle-breeding
crediting.