ADB explores investment opportunities in Azerbaijan's agricultural sector

The Asian Development Bank (ADB) is considering entering Azerbaijan's agricultural sector as early as this year, Sunniya Durrani-Jamal, Head of the ADB Office in Azerbaijan, said during a media briefing dedicated to the presentation of the April edition of the Asian Development Outlook (ADO).

Report quotes her as saying that amid the current conflict in the Middle East, one of the factors putting pressure on inflation will be rising fertilizer prices.

"This will directly affect the cost of agricultural production in Azerbaijan. We see this as one of the key channels for potential food inflation growth. The second factor is dependence on imports of certain agricultural products from neighboring countries. Accordingly, price increases for products such as potatoes or others will also be transmitted into overall inflation. In the short term, we expect inflation to accelerate, including due to rising production costs," Durrani-Jamal noted.

She emphasized that rising costs will lead both to higher prices for domestically produced goods and to increased prices for imported food products.

Speaking about ADB's involvement, the head of the office noted that the bank is currently focused on projects in the water resources sector.

"We are investing in water infrastructure, as water is a key element of agriculture. This includes projects on water supply and wastewater treatment, as well as addressing water scarcity issues. At the same time, our direct participation in agriculture is currently implemented through private sector operations. However, we have strong interest in expanding our presence in this sector and will explore relevant opportunities during the year. We are already in close coordination with the government on this matter," she added.