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Transferring the public service to the private sector is a prerequisite of the production boom
2019/08/28

Deputy Minister of Agriculture-jahad and CEO of CORC, H.Shirzad in a speech in the "Conference of Production boom" ,said that the policy of enterprises demands to implement free trade policy as well as transfer the public services to the private sector, noting that hence entrepreneurship is the one the major goals, we should pursue to create sustainable occupations.

"In a farming system saturated with different types of risk, we should adopt an appropriate strategy for modification and compatibility", he added.

Referring to the tripartite level of scale in the issue of " boom production, including macro, mediate and micro, he maintained that we need to set aside the individual approach concerning the production issue, notwithstanding boosting the bargaining power demands to develop strong bodies which be capable enough to boom production.

Asserting that the economic achievement of the agriculture depends on the mobility farming legal entities and agro-corporation, rouse a question what is the share of the agricultural sector in the GDP? Confirming the scarcity of the large agro-corporations, he said that the high-interest rate of bank and high rate of inflammation, the agro-corporation could not work effectively

"The economic yield of corporation project in the agriculture sector amounts 25-27%, while the bank system imposes an 18% interest rate on them, which consequently causes negative  yield", the official said.

"The abstraction issue is reflective of the importing and exporting policies. If they were in favor of production, abstraction could lead to the mobilization of capital and assets and production boom, otherwise it would hurt the domestic production", the official stated.

Implying the agriculture subsidization in many of the developed countries, accentuated the significance of subsidization policies, noting that Turkey dedicated 70 billion $ to the agriculture sector, which amount could we dedicate? "

 "There is no doubt for subsidization since in the modern world subsidization has been dedicated to the agriculture sector more than 40 years," Shirzad said.

Confirming that the government could not be a good investor, businessman or producer, he emphasized that these aspects should be transferred to the organizations, unions and guild system in order to be capable enough to compete.

He went on that the unnecessary services should be set aside by the public sector and unnecessary regulations should be removed.

Concerning the insurance system of the agriculture sector, he asserted that this system has been dominated by the bank system; therefore it could not work independently.

Shirzad said that the farming enterprises require and R&D system rather than the research outputs.

"The national financial chains for supplying the agricultural value chain does not coordinate with the current banking system since the banking structures have tailored to work with macro enterprises.

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