YEREVAN, DECEMBER 28, NOYAN TAPAN. The year 2007 was a favorable one for the Armenian agriculture: the growth of the gross agricultural output made 9.6%, the RA minister of agriculture Davit Lokian stated at the December 28 press conference. According to him, this growth is mainly conditioned by an increase in production of grain, potato, grapes, vegetables, gourds and melons, meat, poultry and fish. A lower index as compared with 2006 (by 10.1%) was registered only in fruit production due to sping frosts this year. The minister said that 101 communities were provided with gas supply networks this year under various programs on development of rural communities. Gas supply networks will be installed in more than 100 settlements in 2008. The drinking and irrigation water supply was improved in about 80 communities, as well as several intercommunity roads were repaired. According to D. Lokian, in 2007 high-quality seeds, which were imported from Ukraine and Russia, were provided to almost all marzes with the aim of increasing agricultural output. A complex program on development of seed-farming has been worked out, according to which the government will finance the private sector for purchase and production of highest-quality seeds. This process has already begun in Sisian, Etchmiadzin, Akhurian, Gegharkunik and Lori regions. In the words of the minister, this year the Armenian government implemented a pilot subsidizing program in the country: land users in 15 rural communities were allocated 35 thousand drams (about 110 USD) per a hectare. This program will continue next year. In accordance with the order submitted by the RA ministry of agriculture to the government, starting from 2009, farms will not pay a value added tax (VAT), if their turnover does not exceed 8 million drams. So, according to D. Lokian, only 4 thousand out of 335 thousand farms will pay VAT. He added that later it is envisaged to grant this privilege to farms with a turnover of 15-20 million drams.

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