AZE.US
At first glance, the price gap looks illogical. Azerbaijani tomatoes, cucumbers and peppers are grown at home, yet they can end up selling more cheaply in Russia than in Azerbaijan itself.
The explanation lies in how the two markets work.
According to growers and market participants cited in the report, prices for greenhouse vegetables have recently fallen as warmer weather boosted output and increased supply. In Barda, cucumber farmers say prices have dropped over the past 10 days from 1.40-1.50 manats per kilogram to around 0.90-1 manat, largely because harvest volumes have sharply increased.
But that price decline has not moved through the Azerbaijani market evenly. In some regions, local producers still say tomatoes and other greenhouse vegetables are reaching the market at relatively high prices, even if they expect prices to fall later as more domestic produce becomes available.
Economist Turab Rzayev says one of the main reasons prices have fallen in Russia is the surge in supply there. Seasonal abundance, stronger domestic production and wider imports from other countries have all added pressure to prices on that market. As a result, Azerbaijani exporters are often forced to offer their goods more cheaply in order to stay competitive.
That is where the key imbalance appears. Export prices may fall quickly because vegetables are perishable and producers need to move them fast in a more competitive environment. But inside Azerbaijan, retail prices are shaped by a different set of costs.
Fuel, transport, storage and selling expenses remain high on the domestic market. That means cheaper prices abroad do not automatically translate into equally fast or equally deep price cuts at home. Even when producers lower prices, the end consumer in Azerbaijan may not feel the full effect right away.
Traders on local markets say some products have already become cheaper. Cucumbers that had been selling for 2.5 to 3 manats have in some cases dropped to around 1.5 manats, and may fall further by evening. Some varieties of peppers have also declined from 4-5 manats to around 2-3.5 manats, depending on quality.
Still, the broader picture remains mixed. Some vegetables are getting cheaper, some have barely moved, and others are still expensive. That is why the situation is less about a single contradiction and more about the structure of the market: Azerbaijani vegetables can be sold more cheaply in Russia because exporters must compete harder there, while domestic prices remain slower to adjust.
Unless internal production expands further and market mechanisms become more efficient, that gap may continue to show up even during the seasonal decline in prices.
AZE.US