Azerbaijan news

Will they be able to prevent a sharp rise in prices?

The state in Azerbaijan and mobilization resources will be created. This is the president’s February 10This is reflected in the Decree “On ensuring the activities of the State Reserve Agency of the Republic of Azerbaijan” signed in Decree of the Cabinet of Ministers on state reserves the law prepare a project and list of strategic goods in the consumer market president must approve in agreement with.

State Reserve Agency (DEA) snowOne of the tasks is to ensure short-term sharp price fluctuations on the country’s strategically important goods in the domestic market snowis to buy a bottle.

About the State Reserve Agency

DEA on October 7 last year president It was established by the decree of Ilham Aliyev on the basis of the State Material Resources Agency of the Ministry of Emergency Situations. The goal is to form a more efficient supply chain for strategically important goods in the country and increasing the resilience of the domestic market to short-term adverse effects. The State Grain Fund has also been placed at the disposal of the newly established Agency.

Milli Assembly Economic policy, industry and Member of the Entrepreneurship Committee Rufat Guliyev “Turan”He said that, The DEA has two functions: “First, we must have sufficient reserves. Some experts consider it important to have these reserves for nine months, and some experts for one year.

“When inflation rises sharply…”

Deputyto the words of according tothe second function of the institution is to balance prices and “That is, when inflation rises sharply, it uses those state reserves to provide the population with food at old prices. This mainly applies to food products included in the consumer basket.

Deputy He described the establishment of the agency as a very important step: “Azerbaijan must be ready for any foreign challenges.”

Parliament Member of the Agrarian Policy Committee Azer Badamov also saidTuranHe said that, DEA aims to protect the Azerbaijani economy and domestic market from external influences: “Rising food prices in world markets also affect the domestic market of Azerbaijan. For example, the rise in bread prices at the beginning of the year is directly related to the rise in import prices for grain in world markets. In other words, the establishment of this Agency, in particular, the transfer of the Grain Fund to this organization, aims to create a state reserve of strategic goods, which are in great demand.

“The state takes the path of controlling economic activity”

Economist and businessman Nazim Baydamirli told RFE / RL that, narrow the scope of authority of various government agencies and or the tradition of expansion must end: “None of them really go beyond administrative resources in setting pricing policy.”

According to him, this is what it means that, The state itself takes the path of controlling economic activity: “This is a lot acleads to disastrous results. Unun As for the steps taken regarding the prices, the state cannot control these prices with such instruments.

According to N. Baydamirli according tothe only one of price optimization way There is – not to hinder the operation of market instruments: “That is, to create a competitive environment and is to use the government’s fiscal policy to take immediate steps in favor of consumers. ”

He says that, If there is a shortage in any area of ​​the world, if there is a possibility of price increases, the first step of the government is to raise import duties and It is possible to reduce taxes internally: “It is a pity that, In the economic sector of Azerbaijan, they forget this economic alphabet.



Azerbaijan news

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