AZE.US
Baby formula prices in Azerbaijan remain high because the country is fully dependent on imports, faces added logistics costs and still applies a hefty tax burden to these products.
Parents in Baku say some baby formula products now cost 90, 110 and even 120 manats for just 400 to 800 grams. In many cases, they say, one package lasts only a few days or at most about a week, turning infant feeding into a serious financial strain for households.
Consumers say the issue is not only price, but also quality. For families buying food for infants, cheaper options matter, but so does confidence that the product is safe and nutritionally sound. Against the backdrop of rising living costs, some residents say the expense of baby food has become one more factor shaping family decisions.
Retailers and pharmacies say prices vary depending on composition, quality and packaging. Products sold in cardboard packaging are generally cheaper, while formula in metal cans usually costs more. That has created a wide price range on the market, from around 10 manats for lower-cost products to more than 100 manats for premium options.
Economist Rashad Hasanov says Azerbaijan is almost entirely reliant on imported baby food and has no local production of its own. According to him, these products are already expensive in the countries where they are made, and once shipping and import logistics are added, retail prices climb even further.
Tax policy is also part of the problem. Baby food is subject to an 18% value-added tax, which pushes shelf prices higher. Hasanov noted that during the pandemic, baby food was temporarily exempt from VAT, and that relief was reflected in prices. In his view, if the authorities reintroduced tax breaks for such socially important products, families would not be facing today’s price levels.
The result is a market where baby formula has become far more than a routine household purchase. For many families in Azerbaijan, it is now one of the clearest examples of how import dependence, logistics and tax policy can combine to hit essential goods.