550M AMD TO BE ALLOCATED TO ARMENIA’S AGRICULTURAL SECTOR IN 2010

news.am
April 9 2010
Armenia

This year, because of the global financial crisis, the RA Government
plans to allocate 550m AMD for the agricultural sector’s development
against last year’s 1.6bn AMD, Khachik Harutyunyan, Chairman of the
Committee on Agriculture and Environment, RA Parliament, stated at
a press conference on April 9.

He pointed out that the funds will mainly be directed to the highland
households. In this context, Harutyunyan stated that the Government is
doing its best to bring its share in the agricultural sector up to 5%
by means of investments in and government assistance to the sector.

"Government investments in the agricultural sector constitute 30%
in the United States, and up to 50% in some European states. We are
elaborating a food security concept to bring the Government’s share
in the agricultural sector up to 5%," Harutyunyan said.

As regards irrigation subsidies, he pointed out that the Government
allocates around 5m AMD annually for this purpose. "Despite the crisis,
the amount has not been changed his year," he said.

Harutyunyan stressed that the Government will not launch fertilizer
subsidy programs this year. Farmers often cannot afford fertilizers at
market prices, but the Government is unable to subsidize this year,
he said. Harutyunyan pointed out that the Vanadzor-based Khimprom
enterprise should be re-operated to produce high-quality fertilizers
as an alternative to the low-quality fertilizers imported from Georgia.