KHUJAND, March 6, 2009 Asia-Plus — Cotton-growing farms in northern Tajikistan are not in hurry to realize last year’s cotton harvest and pay off their outstanding debts.
A source at the branch of the National Bank of Tajikistan (NBT) in Khujand told Asia-Plus that the Sughd cotton farmers had repaid only little more than 25 percent of last year’s cotton loans so far. “Last year, local cotton-growing farms took loans for a total amount of 93.1 million somoni from banks,” the source said, noting that as of February 27, they had repaid only 25 million somoni.
“However, it does not mean that they do not have funds to pay off their debts. They are just waiting till cotton rates increase. The current cotton rates are low and it is unprofitable for them to sell cotton now,” said the source, “At present, the price of one ton of grade 2 cotton on the world market is 1,322 US dollars. If to deduct all cotton production expenses, the cotton-growing farms may have 900 dollars per ton. However, many of them are waiting for increase in cotton rates.”
According to information the NBT’s branch for Sughd has, local farming units have sold only 50 percent of last year’s cotton harvest so far, the source said.
We will recall that the Sughd farmers produced 88,000 tons of raw cotton last year, while their target had been determined at 172,000 tons of raw cotton.
