Turkmen ministry specifies pricing policy for cotton, wheat
Ashgabat, Turkmenistan, Dec. 4
By Huseyn Hasanov– Trend:
Starting from 2019, Turkmenistan will introduce new state procurement prices for wheat and cotton, the country’s Ministry of Agriculture and Water Resources said in a message.
The cost of one ton of wheat has been increased from 400 to 800 Turkmen manats. Cotton prices have been set considering the quality characteristics of raw cotton.
Starting from the day of harvesting and until October 15, the cost of one ton of medium-fiber cotton varieties will be 1,500 manats, from October 15 to November 15 it will be 1,430 manats, and from November 15 until the day of harvest completion it will amount to 1,365 manats.
In turn, the price of one ton of fine-fiber cotton, elite varieties of seed cotton starting from the day of harvesting and until October 15 will be 2,000 manats, from October 15 to November 15 it will be 1,910 manats, and from November 15 until the day of harvest completion it will amount to 1,820 manats.
The minimum payment for the land has been set for landowners, and they have been completely exempt from paying taxes. Provision of equipment, seeds, mineral fertilizers, irrigation water and other types of services will be also provided to tenants on preferential terms. For example, presently, the production costs for growing wheat amount to 925 manats per hectare of land, while the expenditures of tenants considering the benefits amount to 448.15 manats.
Next year, the actual costs will be 1,449.77 manats per hectare, but tenants will only refund 687.54 manats. Thus, more than half of expenditures of grain growers will be financed by the state. In addition, since October 5, 2018 a line of credit has been opened for settlements with cotton producers.
The official exchange rate of the Turkmen manat against US dollar has remained unchanged since January 2015 ($1 = 3.5 Turkmen manats).