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Both abundance and high prices - Why is it like this? -
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Both abundance and high prices - Why is it like this? - Can prices decrease?

Speaking at the conference dedicated to agricultural issues on May 25, President Ilham Aliyev said that thanks to local production, Azerbaijan provides itself with vegetables, melon products, fruits, and berries at 107 percent.

At the same time, it should be recalled that after the oil-gas sector and gold, fruit and vegetables come first in Azerbaijan's exports. In January-May 2026, Azerbaijan sold 354.8 million dollars worth of fruits and vegetables abroad.

Although Azerbaijan fully provides itself with fruits and vegetables and even exports a significant amount abroad, why are the prices of fruits and vegetables in our country very high according to the season? Why do prices not fall despite such abundance?

Medianews.az asked these questions and economist Khalid Kerimli said that there are several reasons for the high price of fruits and vegetables. According to him, one of the reasons is the high cultivation costs: “Secondly, there are issues related to productivity. Because the level of productivity plays an important role in the formation of fruit and vegetable prices. Thirdly, the high labor costs, increasing expenses on medicines, and rising transportation costs. In other words, inflation progresses and the prices of fruits and vegetables increase as well.

Regarding the abundance, the issue is that fruits and vegetables are also exported. Export is a factor that raises the price of fruits and vegetables. Export means that a portion of the product does not enter the local market but goes abroad. Having export is very good; it is an important matter. Farmers can earn money from this, and the farmer’s income is beneficial for our country.”

The economist noted that two years ago diesel price was 80 qapik: “Then it became 1 manat. At the end of 2025, it increased by another 10 qapik. This also increases transportation costs. There is inflation in labor, labor prices rise. That is, the farmer’s costs to grow fruits increase, transportation costs increase, money loses value, and therefore he must raise the selling price of his product to be able to earn.

The entrepreneur tries to sell at the highest price possible. The entrepreneur, farmer, or trader thinks not about us buying cheaper, but about how he can sell more expensively. Only when he sees that the product remains with him, cannot be sold, and may spoil does he lower the selling price.

Thus, the price of fruits and vegetables depends both on the costs and productivity, on the amount of product offered to the market. On the other hand, compared to previous years, costs have increased significantly.”

Nailə Qasımova,

Medianews.az

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