Azerbaijan’s Corn Import Exceeds $20 Million

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Jan 23, 2023 | Agricultural Markets

Reading time: 2 minutes

During January-July of the last year, 39,643 tons of Corn worth 14.6 million US dollars were imported to Azerbaijan. According to the calculations made by “APA-Economics” based on the report of the State Customs Committee, compared to the corresponding period of the previous year, the value of Corn imported into the country increased by 64.2%, and its volume increased by two times.

Compared to the previous year’s period, the average price of each ton of Corn imported into the country decreased by 19.2%. Thus, in the seven months of 2021, the import of one ton of Corn to Azerbaijan costed an average of 456.7 US dollars, while this figure decreased to 369 US dollars in the same period of 2022. A total of 58.3 thousand tons of Corn were imported in the first ten months of the last year. According to the State Customs Committee, the value of imported Corn was 21 US million dollars.

Corn cultivation area is approximately 33,000 hectares. According to the USDA, Azerbaijan produced 260,000 tons of Corn and imported 50,000 tons in MY 2021/22. The Agency forecasted this season’s production and import at 40,000 and 265,000 tons, respectively. In 2020, Azerbaijan imported Corn worth $14.2 million, becoming the world’s 103rd-largest importer. The same year, Corn was the 177th most imported product in Azerbaijan. Azerbaijan imports Corn primarily from: Russia ($7.95 million), Turkey ($2.77 million), Austria ($774k), Italy ($637k), and Serbia ($496k).

Azerbaijan’s Corn Insurance

According to the information provided by the Agrarian Insurance Fund, farmers and business people started applying for the insurance of Corn fields in 2021. There are two types of insurance for Corn crops in Azerbaijan – the grain part of Corn (Corn grain) and the hull used as animal feed (Corn silage). When insuring Corn fields, the yield, price of Corn, location, and selected insurance envelope will be considered.

According to the rules, the yield and product price norms for 1 hectare of maize were determined for calculation. These standards apply to both Corn grain and Corn silage. Thus, the yield rate for grain Corn per hectare is between 2-200 centners, and the price is between 40-55 manats/centner (1 USD = 1.7 manats). The yield rate for Corn silage is 135-2500 quintals per hectare, and the price is 3-5 manats per quintal.

Insurance rates and insurance premiums required for Corn crop insurance vary depending on the country’s regions, along with Corn yield, price, and selected insurance coverage. Insurance premiums are lower in regions with less risk of natural disasters. Insurance rates and fees are relatively high in areas with a high risk of disasters. The insurance covers hazards such as fire, earthquake, landslide, and storm.

In some cases, farmers are provided with additional concessions in paying insurance premiums. Thus, if the area where the insured object is located has flood protection structures, the insurance premium is discounted by 5%. In addition, the farmer will receive a 5% discount on the insurance for each year that ends without an insurance event. For example, a 5% discount will be given on insurance after one year without incident, 10% after two years, and 15% after three years. Moreover, farmers under 29 will pay 5% fewer insurance premiums using the “young farmer” discount.

According to the information provided by the Agrarian Insurance Fund, applications for the insurance of Corn fields were started. Farmers and business people can apply for Corn field insurance. An independent insurance expert has to go to the area and inspect the field for the insurance of Corn fields.

Other sources: IOFS

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