More Money Spent on Livestock Products than Earned from Cotton

Discussions were held in Baku within the framework of the 29th session of the Conference of the Parties (COP29) to the UN Framework Convention on Climate Change, focusing on the "Decarbonization and Climate Adaptation of the Cotton-to-Clothing Value Chain." Among other topics, the state of cotton farming in Azerbaijan was also addressed.

In 2017, a "State Program for the Development of Cotton Farming in Azerbaijan for 2017-2022" was adopted. During this period, part of the land used for livestock was allocated for cotton cultivation.

As a result, the target was set to increase cotton processing in the country to 500,000 tons. However, this goal has not yet been achieved. In 2023, cotton production stood at 276,000 tons, down from 322,000 tons in 2022.

According to the State Statistics Committee, the area dedicated to cotton cultivation was expanded by 25% in 2024. However, some independent experts argue that diverting part of the pasture lands for cotton farming has negatively affected livestock and driven up prices. The price of lamb in Azerbaijan has already risen to 20 manats, nearly double compared to seven or eight years ago.

Data from the State Customs Committee show that although cotton exports increased in the first eight months of this year, the export price has fallen. From January to August 2024, Azerbaijan exported 99,539 tons of cotton worth $161.3 million, an increase of 45.7% in value terms and 83.2% in volume compared to the same period last year.

The average export price of cotton per kilogram during this period was 2.76 manats, a decrease of 71 qepik or 20.4% compared to the previous year.

A cotton farmer from Kurdamir, who wished to remain anonymous, told Azadliq Radio that he plans to stop cotton farming next year: "It’s not profitable. I can barely make any profit from my land. I have five hectares. There is practically no irrigation, and the crops are drying out. The subsidy is not enough. Now they only provide subsidies based on the quantity you sell, not on the area planted. So how am I supposed to plant and cultivate?"

The farmer also mentioned issues with the purchasing process: "Part of the cotton is recorded as waste, and no payment is made for it."

In contrast, the Ministry of Agriculture told Turan that payments to farmers for cotton have increased in recent years: "According to the decision of the Agricultural Subsidy Council, this year farmers receive a product subsidy of 190 manats per ton of cotton delivered to procurement centers. Previously, this amount was 180 manats. For the next agricultural year, a product subsidy of 210 manats per ton will be provided for cotton grown with modern irrigation systems. For areas without such systems, the subsidy remains at 190 manats per ton."

It was also noted that cotton harvesting is ongoing in the country: "As of November 11, 168,086 tons of cotton have been harvested and delivered to procurement centers. The average yield across the country is currently 16.35 quintals per hectare. From January to October of this year, 106,450 tons of cotton lint were exported, double the volume compared to the same period last year."

Agriculture expert Vahid Maharramov told Azadliq Radio that the Azerbaijani government has failed to develop cotton farming effectively. He pointed out that most of the cotton produced in the country is exported as raw material: "Azerbaijan does not produce fabric or clothing from it, missing out on added value. Exporting cotton as a raw material is not sustainable in the long term. There is no comprehensive policy for cotton farming; it’s merely a campaign."

The economist noted that Azerbaijan has significantly increased imports of meat and dairy products: "For example, if we earn $200 million from cotton exports, we spend $400 million on livestock product imports. These calculations must be thoroughly evaluated. In one instance, without proper planning, pasture lands were allocated for cotton, increasing the cultivation area to 140,000 hectares. Later, it was reduced to 99,000 hectares due to low productivity."

According to Maharramov, cotton exports are controlled by monopolies: "The production of cotton lint and the equipment used in cotton farming have fallen into their hands. Many farmers who took up cotton cultivation following the government's call seven years ago have suffered losses and are still repaying debts to banks."