KULOB, July 17, 2008, Asia-Plus — The dehqon (peasant) farm, Fayzi Farhod, in Khatlon’s Farkhor district today received a loan from the Agroinvestbonk branch in Kulob for carrying out repeated sowing of maize on an area of 31 hectares that had previously been under wheat.
Speaking in an interview with Asia-Plus, the head of the Agroinvestbonk branch in Kulob, Sayfiddin Qadamov, said that it is the 15th farming unit in the region that has applied for loan for repeated sowing over the past two months.
According to him, loans for repeated sowing are provided under the Tajik Agricultural Finance Framework (TAFF) project sponsored by the European Bank for Reconstruction and Development.
The TAFF project supports the restructuring of Tajikistan’s agricultural sector by providing revolving credit lines to Tajik financial intermediaries (banks and non-bank financial institutions) who will on-lend funds to farmers for seasonal finance. The objective is to provide alternative finance to small farmers and support the freedom to farm concept whilst employing best farming practice particularly with respect to environmental and labor issues. Through coordination with other donor programs, farm yields are expected to increase thereby improving profitability. In parallel the EBRD supports the establishment of a Warehouse Receipts Program.
The project is expected to address the structure of the market by fostering enhanced competition and expansion of the market by providing alternative, untied sources of finance which will stimulate competition between buyers and encourage development of input suppliers and associated farm service providers. It will also increase private ownership through stimulating the break-up of the remaining large farms.
“The TAFF project is being implemented in Vahdat and Hissor districts s well s Sughd province and Khatlon’s Kulob region,” Qadamov said, noting that the EBRD plans to provide up to $5 million for this project.
