Rising fruit prices in Azerbaijan: Experts blame weather and exports to Russia
Fruit prices in Baku
Fruit prices in Baku markets have at least doubled compared to last year. This is confirmed by both sellers’ comments and buyers’ complaints. The average price has risen from about $2 to $5. Experts cite several possible reasons, including weather conditions and increased exports to Russia.
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Wind and rain
This year, there was an insufficient fruit harvest due to heavy rains and winds, reported Vahid Ahmadov, a member of the Milli Majlis Committee on Economic Policy, Industry, and Entrepreneurship, to Turan:
“This affects prices. Additionally, prices always rise before holidays. I believe that after the holidays (June 15-19, which are non-working days due to National Salvation Day and Kurban Bayram – Ed.), prices will decrease.”
“The volume of domestic production is low”
Rising fruit prices depend on several factors, economist Natig Jafarli told Radio Liberty:
“The first factor is weather conditions. In many regions, fruit harvest volumes have decreased due to weather conditions such as hail, which damaged part of the fruit.”
According to him, the volume of domestic production in Azerbaijan is not very large, making it difficult to both increase exports and supply the local market:
“In this sense, the Russian market acts as an indicator. As soon as fruit and vegetable exports to Russia increase, prices in the domestic market rise.”
Jafarli believes that the problem with horticulture is that it takes at least five to seven years to generate income in this field:
“To plant and maintain orchards, it takes at least five years of investment without any profit. Even taking out a loan, considering the high interest rates, does not make sense.”
However, the State Statistical Committee (SSC) reported an increase in fruit production. According to official information, by June 1 of this year, 33.6 thousand tons of fruits and berries were harvested, which is 14.2 percent more than last year.
Some independent economists believe that, in addition to production and exports, overall inflation in the country also contributes to the rise in fruit and vegetable prices.
