The share of foreign products in the markets is gradually increasing, while local products remain relatively in the background. This trend is explained not only by price differences, variety abundance, and logistics opportunities but also by the challenges faced by local production. What steps should be taken to increase the competitiveness of local products?
In a statement to Medianews.az on the topic, economist-expert Gunay Huseynova stated that in order for local production to be competitive, first of all, the balance of supply and demand must be maintained, and thereafter technical equipment, favorable conditions, and other factors must be ensured.
According to her, the main cause of the problem is primarily the disruption of the balance between supply and demand. Demand exists, but supply is insufficient:
“Either there is no one to cultivate and grow the product, or the product is directly exported to foreign markets. In fact, the issue of agriculture being exempt from taxes should be reconsidered. Although the decision aims to supply the local market, in practice it yields the opposite result. Exporting the harvested product abroad both raises prices in the market and facilitates the entry of genetically modified (GMO) products from outside.”
The expert noted that if official storage warehouses were available and the registration of products sent abroad was carried out, the situation would not be like this:
“Currently, it is unclear who planted which product, where it was sold, and how the income obtained is taxed. The second reason for the shortage and weak competitiveness of local products in the market is megapolis formation, mass migration to cities, and also the lack of innovative technical equipment for villagers and farmers. The majority of the rural population consists of elderly people. Even fruits on bearing trees often remain unused because young people move to the capital, Baku, in search of work.”
G.Huseynova emphasized at the end that modern machinery and automated harvesting equipment exist in foreign countries:
“For this reason, even middle-aged people return to agriculture and engage in farming. However, in our country, there is not enough environment for their return. There are villages without pharmacies, medical services, or road infrastructure. As soon as it rains, roads become unusable, and the irrigation system is insufficient.
Although the issue seems simple, many reasons lie behind it. The development of any sector of the economy primarily depends on infrastructure.”
Oguz Ayvaz
Medianews.az