Azerbaijan’s potato market is currently experiencing a significant price disparity. Official data shows that the country’s average potato export price for this year is 59 qapiks per kilogram, a 16.7% increase from last year’s equivalent of 51 qapiks. However, this price stands in stark contrast to the domestic market, where locally grown potatoes are sold for between 1 and 1.5 manats per kilogram. Economists suggest this gap is partly due to domestic production volumes failing to meet local demand, which helps sustain higher prices for consumers within the country.
Economist Akif Nasirli has shed light on the factors behind the lower export prices, pointing to external market demand, currency differences, and high production costs as key elements. He highlights a striking example: Azerbaijani farmers pay about 1.1 manats for diesel fuel, while their Iranian counterparts pay just 2 qapiks—a difference of nearly 60 times, which drastically affects competitiveness abroad. Nasirli notes that for farmers, the choice between exporting and selling locally depends on associated costs like transport and customs. He suggests the government could stabilize the market through tools such as export quotas, subsidies, or guaranteed purchase prices to protect producers while balancing domestic price stability.
