Product subsidy – subsidy given for each ton of agricultural products delivered to suppliers;
The name of the subsidized crops:
o Cotton;
o Tobacco;
o Sugar beet.
Calculation of product subsidy:
- Base amount × product coefficient = product subsidy
What should farmers do to get crop subsidies?
- Every year, by June 1, the forecasted and cultivated fields must submit the declaration (application), and the documents on the delivery of the product to the supplier (product acceptance receipts) by December 15 in EKTIS.
- What should suppliers do about product subsidies?
They enter information about the type and quantity of the agricultural product they have delivered into EKTIS. Payments for documents submitted after December 15 are made in the 2nd quarter of the following year.
What should Uncle Mammad do to get a subsidy for the 12 tons of cotton he produces and sells on a 6-ha field in Meyniman village of Hajigabul district?
- He applies for subsidy through EKTIS. The yield factor for cotton is set at 0.95.
Calculation of product subsidy:
200 x 0.95 = 190 AZN, the amount received for 1 ton of delivered cotton
190 x 12 = 2280 AZN, the amount he received for 12 tons of cotton delivered
