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Tajikistan, Chinese firm discuss cotton cooperation
Jul '14
The Government of Tajikistan and a Chinese company are considering cooperation in the field of cotton production and its industrial processing.
Tajik President Emomali Rahmon had a meeting with Li Yan Zhe, senior adviser of a Chinese company ‘Chuntai-New Silk Road’, which deals with investment in agricultural activities in China’s Xinjiang Uyghur Autonomous Region, the website of Tajik President said.
At the meeting in Dushanbe city, Li Yan Zhe said they are planning to set up cotton production in Tajikistan in cooperation with farmers and specialists in Tajikistan, along with the use of latest production technologies.
The Chinese firm is also planning to construct ginners for processing up to 15,000 tons of cotton fibre annually. Enterprises would also be set up for final product marketing.
In the first phase, which will involve more than US$ 120 million direct investment, over 6,000 new jobs will be created.
Subsequently, investment is expected to go up to $200 million, while the number of jobs is projected to jump to 15,000, the statement said.
Mr. Rahmon said the Tajik side will carefully study the proposal of the Chinese firm before taking the final decision.
In the past, cotton was among the leading export items for Tajikistan and cotton and cotton products accounted for 18.6 percent share in the country’s exports in 2012, earning US$ 244.8 million.
In 2013, Tajikistan produced 392,000 tons of cotton, about 3.6 percent lower than the target set for the year, mainly due to a decline in area under cotton, following the Government’s directive to increase areas under fruits, vegetables and fodder crops.
Earlier this year, Minister of Agriculture Qosim Qosimov said that cotton is no longer a strategic crop for Tajikistan and its production would be gradually reduced to about 200,000 tons. The Minister said that cotton production in Tajikistan is fraught with high costs as the country imports fertilizers and agricultural machinery, and by reducing land for cotton, the Government intends to increase availability of land for growing other crops.

Fibre2fashion News Desk - India

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