YEREVAN. - Because of its inefficient activities, the Government cannot any more enjoy villagers` confidence, Armenian Minister of Agriculture Sergo Karapetyan stated in Parliament.

He harshly criticized the agencies in charge of the sector. "In 2009 and 2010, 2.5% of budgetary funds were spent on consulting services. However, the monitoring conducted by the World Bank showed only 45,000 of 340,000 households made use of the services," the Minister said.

Last year, a total of 300 million AMD were budgeted for plant protection, with only 169 million AMD actually spent. In 2010, 68 million AMD were spent instead of the budgeted 150 million AMD.

Minister Karapetyan also pointed out that 50% of croplands are not used as intended. "Improvement of the situation requires legislative amendments. Village administrations must be entitled to lease the croplands for two years if their owners have been absent from the country for over two years. If the owners do not return in two years, their lands can be leased for another two years," the Minister said. Also, farmers must have the right to lease it out to the village administration for five years provided the farmers are exempted from land tax.

The Minister also pointed out unjustifiably high prices for fertilizers. "I even called on farmers not to buy fertilizers at such high prices," Karapetyan said. He said that production of nitrogen fertilizer will soon be established in the country.

Karapetyan proposed the growing beet in an area of 1,000 to 1,500 hectares. The Minister is also discontent with 25% crediting of the agricultural sector. He said that farmers will receive credits fro livestock breeding.