As is known, the draft law "On the Subsistence Minimum for 2026" proposes an increase in the subsistence minimum for the working-age population of Azerbaijan by 3.9%, or 12 manat, to 317 manat starting next year.
Yeniavaz.com reports that, according to both national legislation and international practice, the minimum consumer basket is based on food, non-food goods, and services necessary for a normal human life.
It should be noted that in developed countries, the main burden in this basket falls on non-food goods and services. In the European Union, the United States, and Scandinavian countries, the share of food in the minimum consumer basket is typically 20-40 percent, while the share of non-food goods and services is 60-80 percent.
In the post-Soviet space and developing countries, a different methodology is used. In these countries, the minimum consumer basket is calculated primarily based on food products, often using a ratio of 70 percent food and 30 percent non-food goods and services.
In Azerbaijan, a model close to a 70/30 ratio is also used to calculate the minimum consumer basket. According to official estimates, food products make up the bulk of the basket.
Our calculations, based on published official data, show that the monthly cost of food products included in the minimum consumer basket in Azerbaijan is 318 manat ($187). This amount is approximately equal to the total subsistence minimum. Since the subsistence minimum is determined based on the cost of the minimum consumer basket, and when calculated using a 70/30 ratio in Azerbaijan, the subsistence minimum should be at least 545 manat.
For comparison, in neighboring Armenia, the monthly cost of food products in the minimum consumer basket is approximately $104 (39,500 drams).
For reference, it should be noted that one of the main reasons for the lower monthly cost of food in the consumer basket in Armenia compared to Azerbaijan is the low minimum per capita food consumption standard in that country. For example, while the minimum annual per capita consumption of fish and fish products in Azerbaijan is 7.7 kg, in Armenia this figure is less than 1 kg. Furthermore, the minimum annual consumption of meat and meat products in Azerbaijan is 32.9 kg, compared to 17.63 kg in Armenia. Oil consumption is 17.9 kg in Azerbaijan and 11.1 kg in Armenia.
It should also be noted that the composition of the minimum consumer basket in Azerbaijan was last determined by a decision of the Cabinet of Ministers on June 6, 2014. Clause 2 of the Resolution "On Approving the Composition of the Minimum Consumer Basket in the Republic of Azerbaijan" states that the Ministry of Economy of the Republic of Azerbaijan, the Ministry of Labor and Social Protection of the Population, the Ministry of Finance, the Ministry of Health, the State Statistical Committee, the Confederation of Trade Unions of Azerbaijan, state scientific institutions and organizations, as well as non-governmental organizations, together with the state, must review the composition of the minimum consumer basket every three years and submit their proposals to the Cabinet of Ministers. However, as can be seen, the composition of the minimum consumer basket has not changed over the past 11 years. The table shows the consumption standards and cost of food products included in the minimum consumer basket in Azerbaijan and Armenia:


Elnur Ali