Will butter prices rise in Azerbaijan? Economist explained consequences of benefit cancellation

Import duty exemption for butter has expired. Thus, the duty rate, which had been applied at 5% since 2017, has been raised again to 15% from the current year. According to the results of inspections conducted in the capital's stores, no significant increase in butter prices has been recorded at this time.

A saleswoman who described the market situation reported that prices had already increased 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 expenditure in this segment increases by approximately 10% during the 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 abolition of the import duty exemption may lead to price increases and butter becoming 15-17% more expensive by 2026."

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