Abandoned by state: Cotton Abandoned by state: Cotton Production in South KyrgyzstanProduction in South Kyrgyzstan

Peculiarities of cottonPeculiarities of cotton--growing in growing in KyrgyzstanKyrgyzstan

Favourable climateFavourable climate

Mainly small Mainly small cotton-growing cotton-growing farms operatefarms operate

Wide use of Wide use of manual labourmanual labour

Growth of cotton sectorGrowth of cotton sector in in Kyrgyzstan from Kyrgyzstan from 1990 1990 toto 2004 2004

Land used for cottonLand used for cotton increased byincreased by 78.8% 78.8%

Yields for raw cotton Yields for raw cotton by 92%by 92%

Production of cotton Production of cotton fibres by 151.3%fibres by 151.3%

DifficultiesDifficulties the farmsthe farms meet withmeet with

Now not many farms Now not many farms have tractors, but have tractors, but even if they have even if they have these tractors date these tractors date from the 1980s-from the 1980s-1990s1990s

The average size of a The average size of a farm in cotton sectorfarm in cotton sector is less than 1is less than 1 hectare hectare which is why young which is why young people don’t want people don’t want to to become agronomistsbecome agronomists

Income and expenses of the farmIncome and expenses of the farm

IncomeIncome 1. 1. Sales Som Sales Som 53200 53200

ExpensesExpenses

1. 1. Lease of landLease of land 0.7 0.7 hectareshectares Som Som 91009100

2. 2. Rent of a tractorRent of a tractor -ploughing -ploughing - sowing - sowing

1500 1500

1000 1000

3. 3. SeedsSeeds 4000 4000

4.4. Irrigation Irrigation 300300

5. 5. FertilizersFertilizers 975 975

6. 6. TransportationTransportation 1200 1200

7. 7. Taxes and paymentsTaxes and payments 600 600

8. 8. Hired workersHired workers 2000 2000

9. 9. Overhead expensesOverhead expenses 5000 5000

Total expensesTotal expenses Som Som 25675 25675

ProfitProfit Som Som 27525 27525

The real profit of the farmThe real profit of the farm

The farmer doesn’t charge wages for his The farmer doesn’t charge wages for his family and himself. These wages are family and himself. These wages are included in the profitincluded in the profit,, so the profitability of so the profitability of cotton-growing at this farm is presented in cotton-growing at this farm is presented in a false lighta false light. . Even if wages are charged at Even if wages are charged at the minimum ratethe minimum rate, , the losses amount to the losses amount to 11475 som11475 soms.s.

Suggestions for State Suggestions for State support of the cotton sectorsupport of the cotton sector

► Establishing of fair purchasing Establishing of fair purchasing price for raw cotton or price for raw cotton or subsidizing the farms.subsidizing the farms.

► Income redistribution in favour Income redistribution in favour of the farms.of the farms.

► Government credits at low Government credits at low interest rate for the farms’ interest rate for the farms’ developmentdevelopment

► Incentives for new Incentives for new

professionals to come to the professionals to come to the cotton sectorcotton sector