Jafarov: Azerbaijan plans to extend agrarian subsidies to smart technologies

Azerbaijan plans to allow agricultural subsidies to be used for smart technologies, Anar Jafarov, Director of the Agrarian Innovation Center under the Ministry of Agriculture, told Report.

Jafarov highlighted that the Agricultural Innovation Center regularly works to attract young people to the agricultural sector, particularly students pursuing degrees in artificial intelligence (AI), data analytics, computer engineering and big data at universities.

"We regularly organize boot camps for these students and young people as part of agribusiness festivals. These boot camps are held within the framework of the 'AI Application in Agriculture' project," he said.

The director added that the main objective is to organize visits by talented young people to major agricultural parks and large farms specializing in and operating in the agricultural sector.

"As you know, these farms are also undergoing modernization. Many farms are interested in applying artificial intelligence to their operations, while our young people are proposing various innovative solutions for them.

We already have more than 100 agricultural startups offering services in various fields. These include mobile and business platforms, as well as mechanisms that help farmers deliver their products to consumers. By joining these platforms, farmers can sell their products directly to consumers, thereby minimizing the costs associated with intermediaries," he said.

He noted that other innovations include various devices, irrigation systems and machinery used for harvesting.

"By adopting these solutions, farmers can increase their income while reducing costs. As you know, there is a list of machinery imported into Azerbaijan or used domestically that qualifies for support under preferential schemes.

Several of our startups have already reached the stage of mass-producing their products. The state provides 40% support for equipment manufactured by these startups and used in the relevant sectors. When purchasing equipment, a farmer pays 20% of its cost upfront, the state covers 40%, and the farmer pays the remaining 40% in installments over five years. This preferential support mechanism is designed for local manufacturers and startup founders," Jafarov explained.

The official also pointed out that farmers receive state subsidies provided they submit the required declarations and meet the other applicable conditions.

"Farmers can primarily use these subsidies to purchase certified seeds, seedlings, pesticides, fertilizers and other agricultural inputs. In addition, we are currently working on a mechanism that would allow farmers, in the near future, to use state subsidies to purchase and implement smart solutions. These funds could be directed toward services offered by more than 100 startups operating within the developing agricultural startup ecosystem. This would provide startup founders with an additional source of revenue while enabling them to improve and expand their operations," he stated.

Jafarov emphasized that much work remains to be done in this area: "Our goal is to ensure that innovative solutions developed and offered by startups address farmers' needs. We are also working on a mechanism to finance farmers' use of these services through state subsidy funds."