As of 1 June the area under cotton in Azerbaijan amounted to 18.3 thousand ha, which is 21.1% less than in 2014. As a result of the absence of competition, farmers are forced to sell the crop at a low price, which is why many of them refuse to grow cotton in the coming years.
Since 2011, the area under cotton in Azerbaijan has reduced. In 2011 cotton was harvested from 42.8 thousand ha, but in 2013, farmers planted cotton only on 23.4 thousand ha.
In 2014 Azerbaijan picked 41 thousand tons of raw cotton, which was 5.2 thousand tons (9.3%) less than in 2013. The yield was 17.9 quintals per 1 ha, which was 1.4 quintals less than in 2013.
Ten years ago, cotton was cultivated in Azerbaijan on 112.4 thousand ha and 196.6 thousand tons of the crops were picked.
A ton of cotton is bought at the price of AZN 410-420. Taking into account the costs, the profitability of cotton production is not more than 10-15%, the farmers say. The company MKT Istehsalat Kommersiya controls 17 of the 25 ginneries in Azerbaijan. ---08B
Economics
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Azerbaijan’s economy, which is heavily dependent on oil revenues, faces a stark warning in the 2021 report by Carbon Tracker titled “Beyond the Oil States: The Urgent Need to Reduce Dependence on Oil in the Context of the Energy Transition.” The report ranks Azerbaijan among the most vulnerable oil-dependent countries, placing it in the "5th group" — a category reserved for nations expected to experience a decline in oil and gas revenues exceeding 40% over the next decade. This group includes Angola, Bahrain, Timor-Leste, Equatorial Guinea, Oman, and South Sudan, highlighting shared economic risks for these states.
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Azerbaijan's non-oil and gas exports rose 3.5% year-on-year to $2.8 billion during the first ten months of 2024, the Center for Analysis of Economic Reforms and Communication (CAERC) reported in its November "Export Review."
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Azerbaijan Railways CJSC (ADY) will modify the schedules for commuter and domestic trains in line with the Cabinet of Ministers' decision to adjust work and rest days in November, aiming to ensure safe and comfortable travel during the COP29 event, the company announced.
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In Azerbaijan, the government has increasingly relied on tax exemptions for imported goods as a tool to stabilize domestic market prices. The exemption from the 18% VAT on wheat imports, extended this year, exemplifies this approach. New measures have also been introduced, including tax relief on imports of electric vehicle chargers, while exemptions for high-cost medications are currently under discussion. Notably, defense imports continue to be free from taxes and customs duties.
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