State Statistics Committee - Cotton Growing Unprofitable

2015 September 28 (Monday) 11:23:00

In 2015, the purchase prices of raw cotton in Azerbaijan decreased by about 10%. Ginneries explain this with the continuing downward trend in the world prices for raw cotton.

Mass cotton harvest began in early September. This year, cotton was planted on 18.8 thousand ha, which has been the lowest figure in the modern history of cotton growing in the country. Compared to 2014, cotton plantations were reduced by 18%.

Due to the sharp reduction in acreage, many ginneries have ceased their activities. For example, of the 14 factories of Ltd. MKT Istehsalat Kommersiya, only six will receive cotton this year. Purchasing prices for raw cotton will be from 330 to 380 manat per ton, depending on the grade (Grades 1-4), the company said.

For six months of this year, Azerbaijan exported over 3 thousand tons of cotton fiber at the average price of $ 1,700 / ton. During the same period in 2014 the average export price was about $ 2,100 / ton.

Cotton production in Azerbaijan periodically becomes unprofitable. Since 2013, it has become extremely unprofitable. The State Statistics Committee told Turan that the average selling price of 1 ton of raw cotton by farmers was 402.7 manats, while production costs amounted to 515.1 manats. In 2014, at a cost of 690.5 manats to produce 1 ton of cotton, farmers gained just 433.6 manats. No exception will be this year, as the reduction in the acreage is proportionally followed by growing costs.

In 2014 Azerbaijan produced 40,970 tons of raw cotton, which was 9.3% less than in 2013.

Cotton Production in Azerbaijan in 2009-2014 (in tons):

--08B—