OMM Redaksiyası
VAT exemptions applied to the import and sale of wheat, as well as the production and sale of wheat flour and bread, will expire on Jan. 1, 2027.
“Operative Information Center-OMM” reports that the potential impact of ending the exemptions on flour and flour-product prices is currently a key subject of discussion.
One of the main factors is Azerbaijan’s dependence on wheat imports. The country’s current self-sufficiency in wheat stands at 55.4%.
Dependence on wheat imports falls to 50%
Experts say Azerbaijan’s dependence on wheat imports stood at about 70% in previous years but has now declined to 50%.
Various incentives and subsidies are provided to farmers engaged in grain production to reduce this figure further.
However, it may take several more years for the country to fully meet domestic demand through local production.
Wheat production increases
In 2026, wheat yields rose by 10.3% compared with 2021 and by 8.4% compared with 2025. Yield reached 36.3 centners per hectare.
This year, the total area planted with wheat in Azerbaijan was 460,000 hectares, while production amounted to 1.605 million tons.
As wheat is a strategic food product, imports help ensure the full and uninterrupted supply of domestic market demand.
Could VAT exemptions be extended for another three years?
Experts believe the exemptions could be extended, taking into account wheat prices on the global market and Azerbaijan’s continued dependence on imports.
They expect the VAT exemption on wheat imports to be extended for another three years.
Continuing the exemptions could also help keep prices stable, they said.
It was also noted that bread is a strategic food product and its price is regulated by the government.
Thus, although wheat production has increased in Azerbaijan, imports remain necessary to fully meet domestic demand. Whether the VAT exemptions will be extended will be one of the key issues affecting wheat, flour and flour-product prices in the coming period.
