Instability in the cotton market of Azerbaijan remains

In 2012, Azerbaijan collected 56.8 thousand tons of raw cotton, which is 14.4% less than in 2011.

Experts find it difficult to predict the pattern for 2013 because of the unstable price of cotton fiber on the world market, and difficult relationships with local farmers, cotton companies.

In 2012, the price of cotton fiber was relatively successful for the exporters. However, they did not agree to increase the purchase price of cotton. A ton of raw cotton was bought at a standard price - 420 manats, while stock prices of cotton allowed bringing them to 600 manat. Therefore, according to experts of the Ministry of Agriculture, despite the need for replacement planting, it is difficult to increase the area under cotton. The situation will become clearer by mid-February, when the period of contracts between cotton companies and farmers is completed.

In 2012, the area under cotton amounted to 29,217 hectares. This is 31.8% less than in 2011 (42,829 ha). At the same time, under the influence of various factors, cotton yields increased from 15.5 to 19.5 quintals per 1 ha. Cotton production in 2012 corresponded to the figure in 2008 (55,400 tons). Low prices, as well as the yields lead to a relatively low profitability of cotton.

According to the State Statistics Committee, in 2010-2011, Azerbaijan exported, respectively, 2,609 and 4,878 tons of cotton. During 10 months of 2012 it exported cotton worth $ 8.1 million, or 74.6% more than in the comparable period of 2011. - 08B-