YEREVAN. - It is necessary to think of import substitution in the Armenian agriculture, Prime Minster of Armenia Karen Karapetyan said during a consultation held at the Ministry of Agriculture Tuesday. 

''We are constantly speaking about import substitution. Why are we considering the issue related to seeds? On the basis of plant-breeding station in Gyumri, it is possible to create a normal commercial structure, which would both produce and sell seeds. We will then not have to constantly subsidize the seed production,'' the PM said.

To organize agricultural work, distribution of fertilizers to farm enterprises has started but with the tough demand to return the amounts. Thanks to price distribution, it was possible to lower the price and save on 1,5 million AMD ($3.1 million) subsidies. “We should understand what we spend and receive. Any program should have a precise result measurable by figures. We speak laconically, by results and amounts,” Karapetyan stressed.

According to Agriculture Minister Ignati Araqelyan, the Government will soon introduce a package of investment programs in the sphere of organic fertilizer production. A pilot program of accessible credits for the preparation of agricultural raw material is also planned to be implemented. Receiving floating capital on loan, plants will be able to settle accounts with farmers without delay.

The activity of the Fund for Agricultural Development (IFAD) was discussed as well. The PM noted that cheap loans should be spent on strategic programs with the help of the fund. “With their help we should develop farm enterprises for long term: drip irrigation, intensive gardening and leasing technology. That is, everything that can qualitatively change the farm enterprises,'' the PM concluded.