April 2007


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Cotton Industry faces depletion (Tjikstan)

 

Experts have warned that the cotton industry in Tajikistan may suffer badly and it could have deadly effect on country’s economy since cotton has 10% share in the total Tajik export. Even the revised harvest target of 60,000 tonnes set by the Government may not be achieved even though the Government is doing everything in its kitty to match the same.

Cotton growers are facing the problem of direct financing with 90% of 11,000 cotton farms in debt to middlemen. It is a vicious circle with middlemen turning to future companies, which give loan at a manipulative rate and they turn to foreign investors.

It is estimated that the total debt owed to future companies may be in the tune of US $300 million which is equal to three-forth of the Government budget. Some other factors that have contributed to the agony are the declining land for cotton cultivation and the influx of locusts in summer which destroyed the cotton crop in many areas.


 

 
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