The National Council of the three-year Atar-3
project, initiated by S.Bayar when he was Prime Minister to increase
agricultural production, met on December 20 to review final results. Several
aimag Governors urged continuance of the project so that its gains could be
consolidated. 

The success of the project is indicated by
rising agricultural productivity. This year’s harvest was 366,300 tons of
grain, 344,500 tons of wheat, 169,000 tons of potato, 90,300 tons of
vegetables, 5,000 tons of barley, 3,100 tons of oats, 538 tons of rye, 12,900
tons of oil plants, 205 tons of buckwheat and 38,900 tons of animal fodder
plants. This would meet domestic demand of wheat and potato 100% and of vegetables
53.7%.

In the three years since the project began
in 2007, production of grain has increased by 251,700 tons, of potato by 55,400
tons, of vegetables by 10,900 tons and of animal fodder by 26,900 tons. Besides,
jobs have been found for 6,000 mechanics and vegetable traders and new
agricultural techniques and technology introduced. There has been a significant
increase in the area under irrigation and in yield per hectare.

Minister of Food, Agriculture and Light
Industry T.Badamjunai said they planned to further expand irrigation, to privatize
ownership of agricultural land, to exempt from tax all domestically produced
wheat, potato, vegetables and fruits, and to revise the tax structure on
imported wheat and vegetables.

The Ministry plans to take new steps to
ensure food security, to institute some form of crop insurance, to use part of
the mining revenue to improve agricultural production, to identify areas for more
intensive agriculture by the Government, to revise laws on trees and crop protection
from animals, and to institute reforms in several other areas of agriculture.

Prime Minister S.Batbold and Minister of
Finance S.Bayartsogt attended the meeting that heard reports from nine aimag
Governors. One of them was former Prime Minister Sh.Gungaadorj who conveyed a request
from farmers to exempt all agricultural production from VAT as the tax was
often as much as the bonus for farmers. Many farmers from Selenge aimag are against
paying VAT as the law on the agriculture of 2006 has no such provision. The Government
has been apprised of the anomaly and Sh.Gungaadorj urged an early resolution.

Bayartsogt explained the Government has already
prepared a draft to exempt locally produced wheat and fruits from paying VAT
and it will be discussed in Parliament once the Ministry of Road,
Transportation, Construction and Urban Planning adds a provision to revise tax
rates for new railway buildings. He urged the governors to persuade their local
MPs to support the move.

The proposal to extend irrigation facilities
may face opposition from miners who are planned to be taxed more for the water they
use, Badamjunai said, assuring farmers of his support.