Cotton production is reportedly no longer profitable in Tajikistan

Asia-Plus

CABAR.asia says this year’s cotton harvest in southern Tajikistan has reportedly far exceeded last year’s result.  Although, in general, world cotton prices have increased slightly, farmers complain of significant losses.

CABAR.asia cited Qutbiddin Khalilzoda, the deputy head of the Khatlon Agriculture Department, as saying that this year, they have planted cotton on 250,000 hectares in the southern province of Khatlon, which is 50,000 hectares more than last year.

Cotton pickers in the region say cotton harvesting is usually a good income for villagers.  They are paid on average one somoni per kilogram of raw cotton.  If a cotton picker in Khatlon harvests 100 kilograms of cotton per day, he/she will receive 100 somonis (equivalent to almost US$10.00).

At the same time, however, farm managers say that cotton prices have decreased, according to CABAR.asia.

While last year farmers sold a kilogram of raw cotton to export companies for 12 to 13 somonis (US$1.2), this year it has reportedly dropped to 6 somonis (US $0.55).  Therefore, farm managers say that they won’t be able to make a profit this year and repay loans they took from banks to plant and grow cotton. 

Dozens of cotton-growing farms in Khatlon report high yields, but their managers are all concerned about falling prices for the raw material.

Khatlon province is the largest cotton-growing region in Tajikistan and about 50 companies reportedly buy cotton from farmers and export it once it has been processed.  

Safarali Nazarov, the top manager of Pakhtai Osiyo (Cotton of Asia),  the company that buys cotton from farmers and exports it abroad after processing, told CABAR.asia that the company has faced major problems over the past two years. 

According to him, Russia used to buy cotton from their company, but their partnership ended after Russia launched the so-called “special military operation” in Ukraine.  

The company reportedly then tried to sell cotton to Turkiye.  “But they didn’t buy much cotton from us either, because there was an earthquake in that city where the textile factories were located and the factories were destroyed.  …I don’t know if there will be a buyer this year,” Safarali Nazarov said.

“While last year the price for one ton of processed cotton was US$2,850, today it is US$1,700,” Nazarov said, noting that this is certainly unprofitable for exporting companies.   

Meanwhile, according to the Ministry of Agriculture, the country’s cotton-growing districts have yielded about 353,000 tons of raw cotton by November 12, which is 26,000 tons less than by the same date last year.

An official source at a MoA told Asia-Plus on November 12 that cotton growers in Khatlon province have yielded about 244,400 tons of raw cotton by November 12, which is 16,600 tons less than by the same date last year. 

Sughd province and cotton-growing districts subordinate to the center (RRP) are also delayed in cotton harvest due to weather conditions.

Cotton growing districts in the northern Sughd province have reportedly yielded 103,500 tons of raw cotton by November 12, which is 9,500 tons less than by the same date last year.  

The cotton-growing districts subordinated to the center have yielded only 4,300 tons of raw cotton by November 12, which is 700 tons less than by the same date last year, the source added.

According to the MoA Crop Production Directorate, Tajik farmers this year have planted cotton on 186,000 hectares.

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