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Abandoned by state: Cotton Production in South Kyrgyzstan.

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Presentation on theme: "Abandoned by state: Cotton Production in South Kyrgyzstan."— Presentation transcript:

1 Abandoned by state: Cotton Production in South Kyrgyzstan

2 Peculiarities of cotton-growing in Kyrgyzstan Favourable climate Favourable climate Mainly small cotton-growing farms operate Mainly small cotton-growing farms operate Wide use of manual labour Wide use of manual labour

3 Growth of cotton sector in Kyrgyzstan from 1990 to 2004 Land used for cotton increased by 78.8% Land used for cotton increased by 78.8% Yields for raw cotton by 92% Yields for raw cotton by 92% Production of cotton fibres by 151.3% Production of cotton fibres by 151.3%

4 Difficulties the farms meet with Now not many farms have tractors, but even if they have these tractors date from the 1980s- 1990s Now not many farms have tractors, but even if they have these tractors date from the 1980s- 1990s The average size of a farm in cotton sector is less than 1 hectare which is why young people dont want to become agronomists The average size of a farm in cotton sector is less than 1 hectare which is why young people dont want to become agronomists

5 Income and expenses of the farm Income Income 1. Sales Som Sales Som Expenses Expenses 1. Lease of land 0.7 hectares Som Rent of a tractor -ploughing - sowing Seeds Irrigation Fertilizers Transportation Taxes and payments Hired workers Overhead expenses Total expenses Total expenses Som Profit Profit Som 27525

6 The real profit of the farm The farmer doesnt charge wages for his family and himself. These wages are included in the profit, so the profitability of cotton-growing at this farm is presented in a false light. Even if wages are charged at the minimum rate, the losses amount to soms. The farmer doesnt charge wages for his family and himself. These wages are included in the profit, so the profitability of cotton-growing at this farm is presented in a false light. Even if wages are charged at the minimum rate, the losses amount to soms.

7 Suggestions for State support of the cotton sector Establishing of fair purchasing price for raw cotton or subsidizing the farms. Income redistribution in favour of the farms. Government credits at low interest rate for the farms development Incentives for new professionals to come to the cotton sector


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