Friday, 1 September 2017
“We are convinced that the agricultural sector has a great future in Armenia” – Prime Minister receives representatives of brandy and wine making companies
Chaired by Prime Minister Karen Karapetyan, a consultation was held in the Office of Government with the participation of representatives of brandy and wine making companies. Issues related to grape harvesting, development opportunities and prospects were discussed during the consultation.
Noting that the Government considers the representatives of the agricultural sector as its partners, the Premier briefed them on his team’s ongoing and scheduled programs. Karen Karapetyan reminded that the Government-subsidized loans for the purchase of agricultural equipment, intensive gardens, hail-proof nets and drop irrigation systems will be provided at 2% interest rate.
“We have raised the threshold of agricultural loans setting it at 3-10 million drams, with a 3% interest rate applicable for beneficiaries in borderline communities, and 5 percent for other regions. Up to 150 million dram-worth loans are extended to buyers at a 3% interest rate. The gas price for processing companies has been reduced by 40 percent. I do not know a lot of other governments that provide so much financial and other support to the farming sector. We implement these projects because we are convinced that the sphere has a great future in Armenia and we want to encourage our partners to make their business more profitable and change current situation. Today, we expect you to show a similar partnership attitude, since we do believe that we are overdrawing on our potential to back your business,” Karen Karapetyan underscored.
Minister of Agriculture Ignatius Arakelyan reported on the work being done to organize the harvesting process. According to the Minister, last year processing companies purchased about 110 thousand tons of grapes. According to preliminary data, 141 thousand tons of grapes harvest will be in this year. At the same time, he noted that expert analyses show this year’s total grapes harvest will be 10 % less than last year due to cold winter and the farmers’ failure to bury the vines in the soil.
The Minister urged the representatives of procurement entities to regulate production and sign contracts with farmers before the campaign in order to avoid problems. According to Ignatius Arakelyan, about a 30% increase in brandy exports has been recorded this year.
Welcoming the government’s initiatives, the farming sector representatives presented their problems, suggestions and recommendations. They underlined the positive change in the activities of the State Revenue Committee and the fact of increasing the freedom of businesses, highlighting the increase in the threshold of loans provided for procurement purposes.
The Prime Minister also stressed that the State is first of all interested in enhancing the image of Armenian wine and brandy brands. “We must speak openly about the planned activities and their consequences. Once convinced that we will not trigger shocks in this area, we will be push ahead boldly. We should rule out any shocks, risks or losses in the market. We cannot bother the farmer, neither can we hamper the buyer,” Karen Karapetyan emphasized.
Other issues related to the proliferation of vineyards, promotion of winemaking and brandy production, further increase of export volumes and improvement of the legislative field were discussed during the meeting.
