Tuesday, 7 May 2013
State Ready To Promote Sales Of Processed Goods
Chaired by Prime Minister Tigran Sargsyan, a consultation was held today at the Ministry of Economy to discuss purveyance and procurements-related issues.
Attended by over 80 manufacturers, heads of government departments, representatives of domestic organizations dealing with the promotion of exports, today’s meeting was a follow-up upon a similar meeting held two weeks ago.
Welcoming the participants, the head of government thanked them for accepting his invitation. “This consultation relates to agriculture, harvesting and processing of agricultural products from production to consumption. We are going to look at the existing problems and decide upon the steps to take on the way to progress.”
Current situation and export promotion efforts were reported back by acting Minister of Economy Tigran Davtyan, acting Minister of Agriculture Sergo Karapetyan, ADA director Robert Harutyunyan and Armenia’s trade representative to the Russian Federation Karen Asoyan
An exchange of opinions followed during which the speakers presented their concerns and suggestions as to the availability of financial resources, marketing conditions and so on.
Summarizing the debate, Tigran Sargsyan said the Ministry of Agriculture’s recent report testifies that the domestic processing entities face sales-related bottlenecks and are looking forward to being backed by the State in this matter.
The Premier singled out two key groups of problems: “The first group comes from the financial sector. This year we are going to set up a public agency dealing with the insurance of exports. It will be specialized in risk assessment. The second group of issues is whether it is appropriate to rally small and medium-size enterprises into an export-oriented joint venture operational under the aegis of the State. We are prepared to take up the matter with those entities desirous of joining the State in a corporation like that. The issue is pending and the final decision remains with the private sector. Should you take up the challenge, we stand ready to back you in this matter.”
The Prime Minister next dwelt on the government’s agricultural development strategy. “We have 340 thousand farms cultivating 400 thousand hectares of land. We cannot have a productive and competitive agriculture under such circumstances due to the high cost of agricultural products. This factor should be a concern to our processing enterprises. Improved efficiency is the only way to reduced cost, which implies farm consolidation in the long run. The State will abide by a policy of coercive farming: the owners of uncultivated plots of land will have to pay a penalty, or alienate them.
Over the last three years we have offered substantial financial support to our farmers in order reduce the cost-price of farm products. We spend several billion drams every year to provide them with low-cost fertilizers, seeds and fuel. This is an indirect support to the processing enterprises, because they get cheaper products considering that the cost-price includes the money provided by the State. Nevertheless, our chief target is the sales of the processed products. The bulk of State support will go in this direction over the coming years.”
The Prime Minister said the government is ready to consider any proposal concerning the sales in foreign markets and highlighted the need for sharing know-how with start-up companies
Tigran Sargsyan added that all the proposals and recommendations voiced or submitted during the meeting will be given due consideration and the necessary directives will issued to the agencies concerned. Underlining the importance of continued dialogue, the head of government said that an action plan will be put up for discussion at the next meeting.
