DUSHANBE, January 8, 2009, Asia-Plus — Ms Saodat Sohibnazarova, an expert from Tajik think tank, considers that the cotton-growing farms will be able to repay not more than 50%-60% of loans received.
Speaking in an interview with Asia-Plus, Ms. Sohibnazarova, who is chairperson of the sectoral development department within the Center for Strategic Studies, identified low cotton productivity in the country and world cotton price falls (from $1,200 to $800 per ton) as reasons for such an unfavorable prognosis.
“Therefore, the government should think abut new ways of financing the country’s agrarian sector,” said the expert, “With such indicators, farming units will scarcely will receive necessary means from banks in the new season, you know.”
According to her, some 227 million somoni were provided in loans last year to promote enhancement of the agrarian sector. Of this amount, 140 million somoni were provided by the government, further 183.7 million somoni were provided by banks and 93.2 million were provided by other investors, including futures companies.
Sohibnazarova noted that serious economic situation of the country and the global financial crisis required that farming units should repay their loans completely. “May be relevant structures ought not to focus on growing cotton only as investors required before,” said she. “Let farmers themselves decide what crop is profitable for them.”
