ERBIL, Kurdistan Region - Domestic revenues from agriculture in the Kurdistan Region have seen a notable rise in 2015, as more farmers have increased production, according to Kurdish Minister of Agriculture Abdulsattar Majeed.
The data from the ministry shows that imports of Turkish and Iranian farming products decreased by 28 percent last year, due to tightened tariffs put into place in a bid to stimulate home-produced farming.
“Only through tariffs, we have earned some 72 billion Iraqi dinars (about $60 million) over the past eight months, which we did not have in the previous years,” Majeed told Rudaw.
He said that import duties have had a positive impact on the agricultural sector in Kurdistan, with more landowners now back on their farming lands and effectively creating job opportunities during Kurdistan’s severe economic crisis.
“Our own statistics show that around four percent of the working population is now engaged in agriculture due to its profitability,” Majeed said.
Documents from his ministry show that the labor force engaged in agriculture -- including in the production, distribution and marketing of farming goods -- has increased to 20 percent this year, from 16 percent in 2013.
“Obviously, the financial crisis has had a positive impact on sending farmers back to their old occupations. But I need to say that our own support has been effective too,” the minister said, referring to the government subsidies and tax reliefs provided for farming.
Government statistics show that agriculture contributes to 10 percent of the total GDP in the region, with nine percent of the population (farmers and their families) relying on the agroindustry for their livelihood.
The KRG offers farmers’ subsidies estimated at $250 million a year. It invested $677 million between 2006-2013 and is projected to invest an estimated $1.2 billion by 2020.
Colossal revenues from oil exports since 2005, which quickly led to the mass employment of a young Kurdish labor force by the government over the coming years, accelerated the already unchecked urbanization of the cities with mass migration of villagers to larger urban areas.
“I can now say with confidence that the trend is reversed, with people returning to their villages as it is more lucrative,” Majeed said.
He said that over 170 private agricultural projects were granted licenses by the government in 2015, more than double since the previous year.
The Kurdish government hopes that plummeting oil prices, which have created a shortage of cash in the region, will be a turning point for reform of the Kurdish economy, lessening dependence on oil revenues.
The data from the ministry shows that imports of Turkish and Iranian farming products decreased by 28 percent last year, due to tightened tariffs put into place in a bid to stimulate home-produced farming.
“Only through tariffs, we have earned some 72 billion Iraqi dinars (about $60 million) over the past eight months, which we did not have in the previous years,” Majeed told Rudaw.
He said that import duties have had a positive impact on the agricultural sector in Kurdistan, with more landowners now back on their farming lands and effectively creating job opportunities during Kurdistan’s severe economic crisis.
“Our own statistics show that around four percent of the working population is now engaged in agriculture due to its profitability,” Majeed said.
Documents from his ministry show that the labor force engaged in agriculture -- including in the production, distribution and marketing of farming goods -- has increased to 20 percent this year, from 16 percent in 2013.
“Obviously, the financial crisis has had a positive impact on sending farmers back to their old occupations. But I need to say that our own support has been effective too,” the minister said, referring to the government subsidies and tax reliefs provided for farming.
Government statistics show that agriculture contributes to 10 percent of the total GDP in the region, with nine percent of the population (farmers and their families) relying on the agroindustry for their livelihood.
The KRG offers farmers’ subsidies estimated at $250 million a year. It invested $677 million between 2006-2013 and is projected to invest an estimated $1.2 billion by 2020.
Colossal revenues from oil exports since 2005, which quickly led to the mass employment of a young Kurdish labor force by the government over the coming years, accelerated the already unchecked urbanization of the cities with mass migration of villagers to larger urban areas.
“I can now say with confidence that the trend is reversed, with people returning to their villages as it is more lucrative,” Majeed said.
He said that over 170 private agricultural projects were granted licenses by the government in 2015, more than double since the previous year.
The Kurdish government hopes that plummeting oil prices, which have created a shortage of cash in the region, will be a turning point for reform of the Kurdish economy, lessening dependence on oil revenues.
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