Increasing debt of cotton growers to domestic and foreign creditors has propelled the Government to enforce policies that will help in raising levels of over all production and speed up development of the country.
Oqil Oqilov, Prime Minister of Tajikistan has decided not to allow cotton growing farms to take funds from sources other than domestic banks.
Tajik farms already owe US $511 million to its creditors of which a debt of $400 million is accredited to cotton growers alone. Besides, experts believe that cotton production will be lucrative only if the average output totals to 2.5 tons per hectare. Instead the present production comes to mere 1.62 tons per hectare increasing the debt by $102 million.
More precisely, cotton produce this year has reached 419,000 tons whereas the expected output was 550,000 tons. Cotton production may get substantially reduced in the coming years since farmers find the cultivation of other crops more profitable compared to cotton.
In this context, Emomali Rahmon President of Tajikistan, on December 12, also discussed issues about creating new system for funding the cotton sector and providing facilities for the development of small and medium-sized business enterprises.
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