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About cotton, tea and grapes

Analysis Materials 27 August 2009 12:16 (UTC +04:00)

Very often, when people speak about agriculture of the country, we hear that the fantastic production of cotton, tobacco, grapes, early vegetables in Azerbaijan left in the history. Nostalgically the farmers remember rich harvests of technical crops, which became famous in the former Soviet Union. And at the same time, repeating that industrial sector has not developed, Azerbaijan was and remains an agrarian country. The soil and climatic conditions allow Azerbaijan to grow all varieties of agricultural plants, from frost to citrus.

However, with the collapse of the collective mode of farming without modern machinery, technology and tools for the cultivation of competitive commodities and finally without a stable sale market, today no choice has left how to use the opportunity to work freely on the land provided for the cultivation of products for own consumption. Now few people are interested in the principles of the competitive advantages of technical crops to make a choice in favor of the most correct of market solutions. Due to it, grain planting and livestock became most disseminated sectors of the agriculture in Azerbaijan.

Currently it is unprofitable to produce cotton because of low prices for this product on world markets, and this is the reason for the decline in cotton production in Azerbaijan. Farmers voluntarily choose what agricultural products they grow. So, in their opinion, instead of cotton, it is advisable to grow vegetables for exporting to neighboring countries (Russia, Ukraine), who have repeatedly expressed interest in importing these products, as well as to grow fodder plants, which are necessary for the development of livestock in the country. With regards to the technical planting, at this stage only the state can support and stimulate their production.

One of the important conditions in this direction is to create a legislative framework for the development of the agrarian sector. One of the drafts, which will be tabled for discussion at the autumn session of the parliament, is the Law on Cotton Industry. There is a need for the legislative base for cotton industry, as well as it is necessary to adopt laws relating to other branches of agriculture - tea growing, tobacco cultivation. The laws regulating the activities in these spheres would give a boost to the production in these spheres, which were a key source of income of the population in 1970. Adopting laws will enhance the interest of private and foreign investors in these sectors.

Cotton growing

In the period of Soviet governance in Azerbaijan, along with the expression of "black gold", everyday life also included the expression "white gold" - cotton was called so in Azerbaijan. This was a period of a rapid development of cotton in the Republic, when the production totaled up to one million tons of cotton per year. Harvest was processed at more than a dozen of cotton plants existing the Republic. However, after the collapse of the Soviet Union, a dramatic crisis occurred in the agriculture, particularly in the cotton industry.

Now, Azerbaijan is happy to harvest even 50,000 tons of cotton. Azerbaijan's farmers do not display an interest in the cultivation of cotton because it is one of the most labor-intensive and expensive sectors of agriculture. In addition, agro-risks of this industry are too high. On the other hand, cotton is purchased by companies for a very cheap price, and therefore, cotton grower is not interested in the cotton harvesting.

Law draft on the cotton is very difficult, interesting, and contradictory a little. Currently, the law draft has been sent to relevant organizations to obtain a response. After receiving feedbacks, the project will again be considered by the working group and presented for discussions at the autumn session.

Tea growing

In addition to the fall in the production of cotton, the harvest of the tea leaf also incurred decline. Dismissing the record levels during the Soviet period, it should be noted that if in 2001 Azerbaijan produced 1,424 tons of tea, then in 2006 this figure totaled 655 tons. The tea production in Azerbaijan is carried out mainly in Lerik, Lankaran, Zagatala and Astara regions. If during the collapse of the Soviet Union, there were 14 tea factories in Lankaran-Astara zone, now only two of them work.

After the privatization of land, when it was distributed to people, tea bushes were cut down almost everywhere. Currently only 2 percent of the tea plantations has left.

So, there is a growth in the dynamics of imports of tea into the country. In 2003, totally 4,315 tons of tea were imported, while in 2007 this figure reached 8,137 tons. In 2007, $15 million was spent on imports of tea. Statistics show that every kilogram of imported tea to Azerbaijan in 2007 amounted to about $1.8, while in 2003 the price of imported tea was $2.3.

Together with the import, Azerbaijan also exports tea. For example, in 2003 Azerbaijan exported 1,852 tons of tea, the total amount of which reached $3.996 million. In 2007 the country already exported 5,988 tons of tea worth 18 million manat. In this case, according to the latest statistical indicators, each kilogram of exported tea worth about $3, while in 2003 the cost of tea exports from Azerbaijan was $2.1. Thus, against the backdrop of rise in price of exported tea, the value of imported tea, on the contrary, decreases.

Wine-growing

2007 was named year of "grape" at the Ministry of Agriculture of Azerbaijan. Because if in 2006 was collected 100,000 tons grapes, in 2005 - 75,000 tons, then in 2007 - more than 104,000. But what are these 100,000 tons for republic while there were times of fantastic harvests of 1.5-2 million tons of grapes. Due to grapes, in 1980 for the amount of money earned, the State Committee on Viticulture of Azerbaijan topped in former Union, going ahead of oil industry.

The dynamic development of viticulture and winemaking in Azerbaijan ended in 1985. During the Soviet anti-alcohol "war", Azerbaijan was forced to cut down not only the plantation of technical grades, but unique varieties of table grapes. Viticulture still can not recover from this blow. Since 1985, grapes were cultivated in the area of more than 130,000 hectares. Consequently, production minimized.

This has damaged tremendous damage to wineries. Wine-making as an industry ordered to live long, and 76 enterprises and 116 primary plants became ownerless, equipment of which was taken away and sold for a cheap price.

Another reason for the high prices of grapes and wine is that 43,000 hectares of vineyards have left in the occupied zone. Sale of vineyards for private construction finally prevented the development of this valuable crop.

Over the past 5 years, a steady growth has been recorded in the production of grapes, mostly technical grades. The Ministry of Agriculture of Azerbaijan said that now vineyards of intensive type are planted in order to transform them into high-quality dry red wines.

Today, French and German winemakers display a great interest in the Azerbaijani grapes and wine. Increasingly, Western companies display an interest in the projects to restructure the industry, which will lead to an increased attention to improving the taste of the Azerbaijani wine and deliver them to the world market.

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