NKR: Create Incentives for Local Production

Create Incentives for Local Production

NKR Government Information and
Public Relations Department

February 11, 2011

Press Conference of the Prime Minister

Today the NKR Prime Minister invited a press conference devoted to the
price rise on the consumer goods. By words of the Government head rise
in prices of consumer goods in the world as well as in Artsakh is
conditioned by low harvesting and raise in the standards of living.
Prices of the imported goods are based on market relations. According
to Ara Haroutyunyan for ensuring food safety, they ought to stimulate
local food production,mainly agricultural products.

Policy aimed at agriculture development is now realized in Artsakh,
but results are not promising yet. For intensive development of the
sphere they need large investments (circa 40-45 BN per year) but the
state cannot afford it. Currently different programs are in process in
the spheres of cattle breeding development, purchasing agricultural
equipments and ensuring rich crop which may promote economic
development. Prime Minister mentioned that in coming autumn the first
attempts will be done for producing vegetable oil and sugar. In our
country we have all favourable conditions for growing sunflower,
buckwheat, maize and other plants. Ara Haroutynyan also mentioned that
it is necessary to limit the export, regardless that Artsakh functions
with Armenia in the same economic field. About 5000 tons wheat has
been exported but there are still 3000 tons of reserves, which will be
enough till the new harvest. By the Prime Minister’s words about 40
thousand hectare wheat had been sown and we have all the preconditions
for expecting rich crop. Meanwhile wheat and flour producing
entrepreneurs have been warned not to raise the prices. The head of
the Government assured that rise in prices will remain till June but
in summer slump in prices will be noticeable.

During the meeting with journalists Prime Minister answered other
questions as well regarding the state compulsory insurance of cars and
launching TV channels in the republic. Answering the question of a
journalist about establishing state storage Prime Minister mentioned
that having a state storage is really a necessity but large
investments are required. Some of the entrepreneurs created
appropriate conditions which will be used by the state in case of
need.

From: A. Papazian