Kazakhstan extends US$4.5mn loan to cotton growers

25 May '12

1 min read

Cotton growers in the Maktaaral and Shardara districts in South Kazakhstan have received financial aid in the form of loans from Kazakhstan Fund for Financial Support of Agriculture. The fund proposes to distribute a total US$ 4.5 million amongst farmers to promote cotton cultivation in the region.

The Fund has signed a contract with the Irys Microcredit Organization LLP for extending the credit facility at two percent interest rate.

Farmers availed their first loan from the Irys Microcredit Organization in April 2012 and a total of 491 borrowers were financed by May 20, 2012. As per the agreement the loans mature for repayment in October and November 2012.

South Kazakhstan is the only raw cotton growing region in the country, contributing around 40 percent of the region's overall agricultural output.

In 2011, cotton cultivation was undertaken on an area of 161,000 hectares in the region. This year, it is planned to grow cotton on 146,000 hectares of land.

Due to unfavourable weather conditions last year, it only became possible to harvest cotton from 154,200 hectares, which totalled 336,000 tons.

Fibre2fashion News Desk - India

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