AZE.US
Much of the tea sold in Azerbaijan under local brand names is produced from imported leaves rather than domestically grown crops, economist and REAL political committee chairman Natig Jafarli said.
As AZE.US reports, Jafarli made the remarks during an appearance on the Pozan Media YouTube channel.
According to him, tea is mainly imported from Sri Lanka, India, Nepal and other countries before being packaged in Azerbaijan and sold under local labels.
“The tea inside packages presented as local products is not actually ours. It is purchased abroad and only packed here,” Jafarli said.
He estimated that Azerbaijan currently meets only about 6% to 7% of its domestic tea demand through local production.
Jafarli said tea grown in the Lankaran region is of high quality, but the industry lacks affordable long-term financing.
Farmers Wait Six Years for the First Crop
Tea producers may need to wait around six years after planting before receiving a commercially viable harvest and generating revenue.
At the same time, business loans may carry annual interest rates of around 18%.
Jafarli said a farmer who borrows 100,000 manats ($58,800) would have to pay about 18,000 manats ($10,600) in annual interest before earning any income from the plantation.
“By the time the farmer gets the first crop, the business may already be bankrupt,” he said.
In his view, conventional commercial lending is unsuitable for agricultural projects that require years before they begin producing returns.
Call for a State Agricultural Bank
Jafarli proposed establishing a state-owned agricultural and industrial bank modeled on Turkey’s Ziraat Bank.
The institution would provide long-term, low-cost financing tailored to farming and industrial development.
He suggested that the government could invest 1 billion manats ($588 million) in the bank’s initial capital.
Jafarli said the institution should be managed by highly paid professionals and placed under strict oversight to prevent the misuse of public funds.
Without a specialized financing system, he argued, Azerbaijan will struggle to expand domestic tea production and reduce its dependence on imported raw materials.
AZE.US