2012年-世界发展银行全球_Priorities_for_Sustainable_Growth___A_Strategy_for_Agriculture_Sector_Development_in_Tajikistan_Technical_Annex_1_Cotton_Sector_Review_21页_2mb

Summary of the Cotton Sector in Tajikistan

Core Content

The cotton sector in Tajikistan is in a crisis, despite the country's agricultural sector reform efforts. While the sector is theoretically liberalized with long-term land use rights, in practice, it is highly controlled and inefficient, leading to significant losses and debt accumulation. The Government of Tajikistan (GOT) has a vested interest in maintaining cotton production to secure a substantial portion of its tax revenue, but the current financing and sales structure is anti-competitive and discourages investment.

Main Issues and Challenges

1. Financing System

• Crop lien financing is prevalent, tying farmers to a single investor and restricting their ability to choose inputs or buyers.
• Lack of collateral leads to this system, where farmers are forced into agreements that limit their freedom and result in monopolistic practices.
• Local government intervention further restricts competition by allowing only one investor per district and controlling the movement of seed cotton.

2. Debt Situation

• The total external debt in the cotton sector is USD 180 million (as of September 2004), with USD 115 million classified as seasonal debt and USD 50 million as bad debt.
• Debt classifications are questioned, as many debts are unreal or misreported, with missing revenues, overcharged inputs, and misallocated debts.
• GOT is advised to negotiate and assess debt through a professional and independent body supported by the donor community, as current methods are not effective.

3. Market Access and Pricing

• Fixed export prices and FOB terms limit the ability of exporters to maximize revenue and reduce the number of buyers.
• The pricing formula is inaccurate, leading to under-pricing of Tajik cotton and annual losses of USD 12 million.
• TUGE (Tajik Cotton Exchange) is underutilized, and its role in price monitoring and auctions is limited.

4. Yield and Quality

• Seed cotton yields in Tajikistan are around 2.0 MT/ha, still lower than in neighboring countries.
• Low yields are attributed to lack of investment in seed breeding and salinity issues.
• Salinity is exacerbated by land ownership issues and lack of drainage maintenance, as multiple farmers share field systems and no clear responsibility exists.

5. Legislation and Governance

• Land reform is ongoing, but land registration and debt assignment are complex and inefficient.
• Dehqon farms are a major component of the cotton sector, but farmers often do not understand the process or have the means to register land.
• District governments dictate cropping decisions, revoking land use rights for non-compliance, which limits farmer autonomy.

Key Recommendations

1. Remove Crop Lien Financing

• Eliminate the system that ties farmers to a single investor.
• Introduce a new form of collateral, such as land, to ensure continued financing.
• Legislation should be updated to allow for land pledging.

2. Revise Pricing Formula and Allow Multiple Sales Terms

• Replace the FOB pricing with ex-works pricing to better reflect market conditions.
• TUGE should be empowered to conduct baled cotton auctions and register transactions outside of auctions via Customs data.
• This will help increase transparency and market access.

3. Reform Seed Legislation

• Allow import of foreign seeds to improve yields and quality.
• Privatize the seed industry to foster domestic development.
• Seed exports to Afghanistan and Kyrgyzstan could provide a new revenue stream.

4. Adopt International Classification Standards

• Implement USDA classification for cotton to align with international trading standards.
• Create a new independent organization to issue quality certificates, ensuring acceptability to global buyers.
• This will support the establishment of an auction system and increase sector revenues by up to USD 14 million.

5. Resolve Debt Issues

• Debt resolution should focus on freedom of choice for farmers.
• Allow debt repayment through the banking system rather than through the predatory investor.
• Establish a professional and independent body to assess and negotiate debts.

Conclusion

The cotton sector in Tajikistan is underperforming due to anti-competitive practices, poor governance, and inefficient legislation. Reforms in financing, pricing, seed policies, and classification systems are necessary to revitalize the sector, attract investment, and increase farmer returns. These changes will also help GOT maintain and potentially increase its revenue from the sector.