Will butter prices increase in Azerbaijan? Economist explained the consequences of abolishing the privilege

The import duty exemption for butter has expired. Thus, the duty rate, which has been applied at the level of 5% since 2017, has been raised back to 15% from the current year. Based on the results of inspections conducted in the capital's stores, no significant increase in butter prices has been recorded at the moment.

A saleswoman who spoke about the market situation said that prices had risen 4-5 months ago.

"Customers more often prefer products from New Zealand and local production. Currently, the cost of butter ranges from 14 to 30 manats," she added.

It is known that butter is one of the main food products included in the consumer basket in Azerbaijan. According to official statistics, the country's annual need for this product is 38-40 thousand tons. The main countries exporting butter to Azerbaijan are New Zealand, Belarus, and Ukraine.

And how will the increase in import duty affect prices? Economist Rashad Hasanov answered this question: "Per capita expenditures in this segment increase by approximately 10% per year, or an average of 12-20 manats. This creates an additional financial burden of 50-80 manats for an average family of four people. The elimination of the import duty exemption may lead to price increases and butter becoming 15-17% more expensive by 2026."

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