Tweet
ARKA News Agency - Interview
June 3 2004
LOSSES FROM WINTER FROSTS ESTIMATED AT AMD 1.5B
Samvel Avestisyan's, RA Deputy Agriculture Minister's exclusive
interview, to ARKA News Agency.
ARKA What is the sum of losses caused by the winter frosts? What is
the Ministry undertaking currently to compensate the farmers the
losses incurred?
S.Avetisyan - Based on preliminary calculations, the losses from the
frosts made AMD 1.5b. Apricot gardens suffered most of all,
practically for 90% and peach and wineyards to 30% and 10%
respectively. The Government allocated AMD 61.8 mln as a compensation
for purchasing fertilizers, also the Government regards other sources
to support the farmers, particularly the possibility of exempting
gardens from the land tax.
As for the foreign assistance, we applied to a number of
organizations, however there was no reply yet. Mainly, we hope to
FAO's support that is our principle partner in these issues. An
independent group of experts of this organization to arrive in
Armenia soon that once more to evaluate the sizes of the caused
damage and to draw possible support programs.
ARKA What's the expected volume of bread-grain this year?
S.Avetisyan We can supply one third of the inner demand for
bread-grain. The best harvest was in 2002, when 415 thsd. tons of
grain crop and 241 thsd. tones of wheat was collected. At the expense
of our own grain resources we can satisfy 40% of inner demand. The
average crop capacity of the republic makes 20-21% for 1 hectare. On
average, about 100-110 thsd. hectares make area under crop for winter
grain. If we bring the volume of harvest from 1 hectare to at least
30 centners, then we can satisfy 70% of demand. In this case our
dependence on import of grain will significantly reduce. We shouldn't
forget that crop capacity was very high in Nagorno-Karabakh Republic
(NKR), the main grain exporter of which is Armenia. Last year Armenia
exported from NKR grain of high quality and this is a good source for
the covering the shortage of grain in Armenia. However, crop capacity
in 2003 was not very high in Armenia, as only 310 thsd tones of crop
was collected. In 2004 we expect to have up to 400 thsd tones of
crop. On the whole, in order to satisfy the inner demand for
bread-grain, crop capacity to be increased to 50-55 centners for each
hectare, instead of enlarging areas under crop. However, in the near
future we cannot achieve such results.
ARKA Climatic and geographically agrarian sector of Armenia is in
risk zone. What stage is the process of evaluation of insurance risks
of agrarian sector on? When can we have the first examples of
insuring the sector?
S.Avetisyan This year for the first time budget financial means at
AMD 40a mln are assigned for the evaluation of agricultural insurance
risks. Tender for determination of the company to evaluate risks is
conducted by the agency for state purchases. Till the end of the year
the result of evaluation of agricultural risks will be submitted. In
this case, co-operation with international insurance agencies can
begin. If the risks be evaluated this year, then next year
experimental insurance of some crops.
ARKA In 2004 implementation of the first pilot antihail program.
What stage is the implementation of the program on? Which of the two
models, namely French or Argentine is mot acceptable for Armenia?
S.Avetisyan Government assigned AMD 180 mln on pilot program. We
dwelled on Argentine one of antihail settings installation. At
present a group of specialists from Argentina are in Armenia. They
conduct research for further work in Aragatsotn region. It is
expected that settings will be sent to Armenia one of th edays.
Everything is done as en experiment yet, and we will still have to
evaluate the efficiency of th esystems and decide whether to continue
the program implementation or not. The program to be finnced rom the
budget. If the outcome of the experiment is positive, then maybe
donors will be found for the installation of settings in regions with
high hail threat.
ARKA The percentage of crediting of agriculture exceeds 10%. They
talk about possible reduction of interest rate for crediting farms by
banks. How real is it?
S.Avetisyan Of course, the demand for crediting of agriculture was
satisfied only by 10% last year. Steps are done to increase credit
portfolio of banks and reduction of interest rate. Ra President
Kocharian ordered to find possible ways for reduction of the interest
rate to 12%. It's real, as some banks grant credits at 13% of annual
rate instead of 16-20% of annual rate. Of course, the interests of
the banks cannot be neglected, and the contribution of the government
is important. IFAD program of crediting may be effective, and in the
framework of it Foundation for crediting agriculture will be created.
Also, Foundation will credit separate regions lose to the border and
mountainous regions that cannot get bank crediting. Credit clubs
created here will do crediting on cooperative basis at the expense
the Foundation. So the interest rate will be by 2-3% less than that
of bank credit, i.e. to 12% of annual rate.
Our future related to crediting is in space of formation cooperative
credit system where the farmer gets not only loan, but is a member of
that cooperation and manages those means. We already have experience
in this filed. Particularly, USDA applies this system due t which
around 40 credit clubs were founded in marzes that are functionin
sucssfully.
ARKA Recently, the Government approved the strategic program of
sustainable growth of agriculture till 2015. What will be the
expected results by the completion of the program?
S.Avetisyan The strategy covers full spectrum of problems facing in
Armenian agricultural sector. ρςπΰνϋ. The solution of these problems
is not only business of the state but also the producers themselves.
According to this problem the aggregate agricultural production in
Armenia should increase by 70%. The sum of crediting agricultural
sector is expected to be increased 10 times. The program of
sustainable development of agriculture is harmonious to poverty
reduction program. It clearly sets up required actions and term for
their solution. The tasks for the forthcoming 2-3 years are approved
by the Government concern mid-term financing programs We can state
confidently, that this stage of realization of the strategy is
secured by financial resources.
The concrete priorities of the agriculture development are
anti-epidemic measures in animal raising, rehabilitation of
irrigation networks, plant protection from deceases, creation of
special and productive infrastructures, block of measures targeted at
food security.
ARKA How perfect is legislative base in the agriculture?
S.Avetisyan It cannot be ever stated that the legislative base was
perfect. This is a dynamic process. The life dictates its conditions
and according to them, the legislation changes. Currently we work on
several laws, particularly one concerning veterinary. We adopted this
law in a hurry as we had a commitment to the Council of Europe
however, it requires improvement. Also, we anticipate amendments
related to licensing of pest-killers. Definition of farms also needs
clarification. On one hand, eth Civil Code regulates those forms of
farming that exist in Armenia, but it says nothing about farms. One
the other hand, the law on peasant economy is still effective. I
think that we need to fix the stats of farming economies legally and
we need to pass this law next year. T.M. --0--
June 3 2004
LOSSES FROM WINTER FROSTS ESTIMATED AT AMD 1.5B
Samvel Avestisyan's, RA Deputy Agriculture Minister's exclusive
interview, to ARKA News Agency.
ARKA What is the sum of losses caused by the winter frosts? What is
the Ministry undertaking currently to compensate the farmers the
losses incurred?
S.Avetisyan - Based on preliminary calculations, the losses from the
frosts made AMD 1.5b. Apricot gardens suffered most of all,
practically for 90% and peach and wineyards to 30% and 10%
respectively. The Government allocated AMD 61.8 mln as a compensation
for purchasing fertilizers, also the Government regards other sources
to support the farmers, particularly the possibility of exempting
gardens from the land tax.
As for the foreign assistance, we applied to a number of
organizations, however there was no reply yet. Mainly, we hope to
FAO's support that is our principle partner in these issues. An
independent group of experts of this organization to arrive in
Armenia soon that once more to evaluate the sizes of the caused
damage and to draw possible support programs.
ARKA What's the expected volume of bread-grain this year?
S.Avetisyan We can supply one third of the inner demand for
bread-grain. The best harvest was in 2002, when 415 thsd. tons of
grain crop and 241 thsd. tones of wheat was collected. At the expense
of our own grain resources we can satisfy 40% of inner demand. The
average crop capacity of the republic makes 20-21% for 1 hectare. On
average, about 100-110 thsd. hectares make area under crop for winter
grain. If we bring the volume of harvest from 1 hectare to at least
30 centners, then we can satisfy 70% of demand. In this case our
dependence on import of grain will significantly reduce. We shouldn't
forget that crop capacity was very high in Nagorno-Karabakh Republic
(NKR), the main grain exporter of which is Armenia. Last year Armenia
exported from NKR grain of high quality and this is a good source for
the covering the shortage of grain in Armenia. However, crop capacity
in 2003 was not very high in Armenia, as only 310 thsd tones of crop
was collected. In 2004 we expect to have up to 400 thsd tones of
crop. On the whole, in order to satisfy the inner demand for
bread-grain, crop capacity to be increased to 50-55 centners for each
hectare, instead of enlarging areas under crop. However, in the near
future we cannot achieve such results.
ARKA Climatic and geographically agrarian sector of Armenia is in
risk zone. What stage is the process of evaluation of insurance risks
of agrarian sector on? When can we have the first examples of
insuring the sector?
S.Avetisyan This year for the first time budget financial means at
AMD 40a mln are assigned for the evaluation of agricultural insurance
risks. Tender for determination of the company to evaluate risks is
conducted by the agency for state purchases. Till the end of the year
the result of evaluation of agricultural risks will be submitted. In
this case, co-operation with international insurance agencies can
begin. If the risks be evaluated this year, then next year
experimental insurance of some crops.
ARKA In 2004 implementation of the first pilot antihail program.
What stage is the implementation of the program on? Which of the two
models, namely French or Argentine is mot acceptable for Armenia?
S.Avetisyan Government assigned AMD 180 mln on pilot program. We
dwelled on Argentine one of antihail settings installation. At
present a group of specialists from Argentina are in Armenia. They
conduct research for further work in Aragatsotn region. It is
expected that settings will be sent to Armenia one of th edays.
Everything is done as en experiment yet, and we will still have to
evaluate the efficiency of th esystems and decide whether to continue
the program implementation or not. The program to be finnced rom the
budget. If the outcome of the experiment is positive, then maybe
donors will be found for the installation of settings in regions with
high hail threat.
ARKA The percentage of crediting of agriculture exceeds 10%. They
talk about possible reduction of interest rate for crediting farms by
banks. How real is it?
S.Avetisyan Of course, the demand for crediting of agriculture was
satisfied only by 10% last year. Steps are done to increase credit
portfolio of banks and reduction of interest rate. Ra President
Kocharian ordered to find possible ways for reduction of the interest
rate to 12%. It's real, as some banks grant credits at 13% of annual
rate instead of 16-20% of annual rate. Of course, the interests of
the banks cannot be neglected, and the contribution of the government
is important. IFAD program of crediting may be effective, and in the
framework of it Foundation for crediting agriculture will be created.
Also, Foundation will credit separate regions lose to the border and
mountainous regions that cannot get bank crediting. Credit clubs
created here will do crediting on cooperative basis at the expense
the Foundation. So the interest rate will be by 2-3% less than that
of bank credit, i.e. to 12% of annual rate.
Our future related to crediting is in space of formation cooperative
credit system where the farmer gets not only loan, but is a member of
that cooperation and manages those means. We already have experience
in this filed. Particularly, USDA applies this system due t which
around 40 credit clubs were founded in marzes that are functionin
sucssfully.
ARKA Recently, the Government approved the strategic program of
sustainable growth of agriculture till 2015. What will be the
expected results by the completion of the program?
S.Avetisyan The strategy covers full spectrum of problems facing in
Armenian agricultural sector. ρςπΰνϋ. The solution of these problems
is not only business of the state but also the producers themselves.
According to this problem the aggregate agricultural production in
Armenia should increase by 70%. The sum of crediting agricultural
sector is expected to be increased 10 times. The program of
sustainable development of agriculture is harmonious to poverty
reduction program. It clearly sets up required actions and term for
their solution. The tasks for the forthcoming 2-3 years are approved
by the Government concern mid-term financing programs We can state
confidently, that this stage of realization of the strategy is
secured by financial resources.
The concrete priorities of the agriculture development are
anti-epidemic measures in animal raising, rehabilitation of
irrigation networks, plant protection from deceases, creation of
special and productive infrastructures, block of measures targeted at
food security.
ARKA How perfect is legislative base in the agriculture?
S.Avetisyan It cannot be ever stated that the legislative base was
perfect. This is a dynamic process. The life dictates its conditions
and according to them, the legislation changes. Currently we work on
several laws, particularly one concerning veterinary. We adopted this
law in a hurry as we had a commitment to the Council of Europe
however, it requires improvement. Also, we anticipate amendments
related to licensing of pest-killers. Definition of farms also needs
clarification. On one hand, eth Civil Code regulates those forms of
farming that exist in Armenia, but it says nothing about farms. One
the other hand, the law on peasant economy is still effective. I
think that we need to fix the stats of farming economies legally and
we need to pass this law next year. T.M. --0--