'We have our own reasons for increasing the subsidy'

In a bid to boost cotton production, Azerbaijan has decided to increase subsidies to its farmers for the 2023 cotton harvest. The Agrarian Subsidy Council has greenlit a raise from 180 to 190 Azerbaijani Manats per ton of cotton delivered to supply points. This move reflects the government's continued efforts to bolster cotton farming in the nation.

Over the past few years, Azerbaijan has implemented a series of state programs aimed at promoting cotton cultivation, with the President providing specific directives related to the cotton industry. However, despite these initiatives, some experts argue that cotton has yet to become the targeted "white gold" that was envisioned for the country.

The Ministry of Agriculture, on the other hand, maintains an optimistic outlook. According to the ministry, cotton productivity has been on the rise, with an average yield increase of 2.42 quintals recorded last year. In 2022, a substantial 322,300 tons of cotton were harvested and delivered to supply points. Remarkably, this increased yield was achieved without a corresponding expansion of arable land, indicating improved efficiency in cotton farming practices.

The ministry explained this progress to the Turan agency to diligent agrotechnical care in the fields, the effective control of pests, and the widespread use of modern combines in the harvesting process. Furthermore, the ministry contends that the increase in subsidies serves to stimulate farmers' interest in cotton cultivation.

However, not all experts share the government's enthusiasm. Agriculture expert Vahid Maharramov noted in an interview with Radio Azadlig that the government's approach is effectively subsidizing an inefficient sector in Azerbaijan. He highlighted that the nation lags behind other countries in terms of productivity, and there are compelling reasons for this shortfall.

One pressing issue is the inadequate provision of irrigation water to meet the needs of farmers, a problem that persists year after year. Maharramov emphasized that increasing subsidies alone is unlikely to significantly boost productivity.

According to Maharramov, there are ulterior motives behind the subsidy increase. He stated, "Persons close to high-ranking officials are engaged in the supply of cotton. Their goal is that they can at least maintain the current volume of production in cotton growing. If they cannot save, what will they process and export? Therefore, they increase the amount of the subsidy."

The expert further revealed that the production costs for cotton farmers have risen, attributing this increase to rising prices for services provided by equipment used in cotton farming. These services, he explained, are controlled by powerful individuals with ties to both the government and the cotton industry, resulting in increased expenses for cotton farmers.

As Azerbaijan grapples with the complex challenge of reviving its cotton sector, the effectiveness of increased subsidies remains a subject of debate. While the government seeks to breathe new life into cotton farming, questions persist about the sustainability of this approach and the influence of vested interests on the industry's trajectory.