Showing posts with label Cotton. Show all posts
Showing posts with label Cotton. Show all posts

Thursday, 16 October 2008

Tajik farmers enslaved where cotton is king (IHT)


Women in a cotton field in the Kabodiyon district of Tajikistan, on a former collective farm. (Carolyn Drake for The New York Times )


By David L. Stern
Wednesday, October 15, 2008
SHAARTUZ DISTRICT, Tajikistan: Farhod, a farmer in this dusty southwestern spit of land pushed up against the Afghan and Uzbek borders, said that he had committed a subversive and potentially punishable act this growing season. He planted watermelons in addition to the usual cotton.
Such is the precarious position of growers throughout this impoverished republic of seven million that Farhod refused to be photographed or to give his real name. He fears the authorities will destroy his crop, even though they had assured him that he could plant whatever he wanted this year.
"They press down on us from all sides," said Farhod, a father of eight, as he looked out on his neatly planted rows of millionaire, shakira and maistros watermelons. Cotton is king in Tajikistan, at least as far as the government is concerned. In fact, say agricultural experts, the regal metaphor is apt: the system is close to feudal.
Farmers are shackled to the land - "like slaves," one European official says - and forced to grow cotton through a complex system of debts and obligations.
The fact that cotton is often grown to the exclusion of other crops could have catastrophic implications this winter. After a dry summer, Tajikistan and possibly other Central Asian countries are facing severe food shortages, and international aid organizations are girding for a possible crisis.
Cotton is at the core of Tajikistan's economy and, reportedly, corruption. Companies associated with President Emomali Rahmon's inner circle monopolize the business, diplomats and industry experts say, paying taxes that account for 25 percent of the country's annual budget.
The cozy arrangement contributes to what the International Crisis Group, a private research organization, called in a 2005 report "political repression, economic stagnation, widespread poverty and environmental degradation."
Cotton growing, the group said, is "simple and exploitative."
For instance, Tajikistan's and Uzbekistan's governments have traditionally mobilized tens of thousands of university students and children as young as 10 to pick the harvest by hand, since many men from the work force emigrate to other countries for seasonal work.
For Farhod, as for other Tajik farmers, the problems began from his first days as an independent farmer three years ago, when the local collective farm, which dated from the Soviet era, was broken up. He was allotted, but does not own, 16 hectares, or 40 acres, of land and a $5,000 debt carried over automatically from the farm's arrears.
Each year most of his profits go to working off the debt, which was assumed by a cotton trading company. The company maintains a monopoly over all cotton trade in the Shaartuz region and sells Farhod his supplies on credit - at inflated prices, he said - and then buys his production at below-market prices.
Under this system the farmers are perpetually strapped, as they never see any cash. Farhod and others say that what little they earn goes for food and other essentials, but since they have no money in hand, they are forced to buy from the trading company at inflated prices.
"They pay us, but only 14 months later when they sell the cotton," Farhod said. "Each year the debts get bigger and bigger."
The government works in tandem with the trading companies, say Western experts, who spoke off the record because they need to work with Tajik officials. Until recently, officials enforced an unwritten law requiring farmers to devote 80 percent to 90 percent of their arable land to cotton production. When farmers have tried to grow something else, officials and the companies have claimed breach of contract and plowed the field under, farmers say.
Cotton's significance was underlined early this year when the International Monetary Fund revealed that the Tajik government had secretly diverted its hard currency reserves to use as collateral for $240 million in foreign loans for the cotton trading companies.
The scandal broke just as the country was paralyzed last winter by a heat and electricity crisis, which laid bare what many Western experts saw as the Tajik government's ineptitude and inadequacy.
Following a crippling civil war in the 1990s, international donors funneled hundreds of millions of dollars into the country, but now are beginning to question this policy.
Carlos Pinerua, an IMF official formerly responsible for Tajikistan, said in a telephone interview that the bar was set high for the Tajiks to regain the trust of the international multilaterals, which are multinational organizations that finance development.
Noting that the Tajiks had lied to the IMF over a 10-year period, he said, "We will have to look at how to help the country - they are an IMF member - but financing will be very hard."
With Tajikistan's currency reserves now close to zero, the country is highly vulnerable to economic shocks, like the current credit crisis, Western diplomats say. Also complicating the picture is Tajikistan's endemic governmental dysfunction and corruption.
A case in point is the fate of one of the government officials at the heart of the loan scandal, the governor of the central bank, Murodali Alimardon. Far from being fired, Alimardon was promoted to deputy prime minister, and put in charge of agricultural reforms.
This year the Tajik government issued a decree guaranteeing farmers the right to cultivate their land as they see best. Farhod says that he has been planting about 12 hectares of the 16 hectares in cotton and the rest in other crops.
Other farmers say that the cotton quota remains in effect, though slightly lower at 70 percent.
But few here place much trust in a decree. "So far, they're not against the melons, but we'll see," Farhod said.









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Friday, 25 July 2008

African cotton farmers hope for trade breakthrough

OUAGADOUGOU: While besuited government officials slug it out at world trade talks in Geneva this week, African peasant farmers watching their cotton plants grow hope any deal will allow them to farm their way out of poverty.Subsidies that encourage farmers to grow more cotton in rich countries like the United States are blamed for flooding the market and depressing world prices in recent years, making it harder for poor farmers in Africa to make ends meet."It is the growers at the bottom who suffer," said Seydou Ouedraogo, who grows cotton near Leo, some 200 km (125 miles) south of Burkina Faso's capital Ouagadougou."We just want to be treated equally. It is our only source of income, and only cotton can lift us out of poverty. This is unfair competition," Ouedraogo said.At this time of year, the cotton plants here are still small, standing 20-30 cm (1-foot) tall. Their broad green leaves standing out against the rich, dark earth which has soaked up the seasonal rains of the past couple of months.
Burkina Faso, West Africa's top cotton producer, is a leading member of the Cotton-4, or "C-4" group, which has pressed World Trade Organisation (WTO) negotiators to include extra restrictions on cotton subsidies in any final trade deal.The group, which also includes Mali, Benin and Chad, has had some success. Negotiators in Geneva are discussing a draft that would cut U.S. cotton subsidies by 82.2 percent -- more than the 60 percent cut proposed for other similar farm subsidies.Washington has paid out $2 billion (1 billion pounds) to $4 billion a year in subsidies in recent years to the 25,000 U.S. cotton farmers who export 80 percent of their output and account for 40 percent of cotton traded internationally around the world.
http://www.iht.com/articles/reuters/2008/07/24/africa/OUKWD-UK-TRADE-WTO-COTTON.php



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Wednesday, 16 July 2008

CAP Reform: Commission welcomes adoption of reformed cotton support scheme

CAP Reform: Commission welcomes adoption of reformed cotton support scheme
23/06/2008 Press release
Mariann Fischer Boel, Commissioner for Agriculture and Rural Development, welcomed today's adoption by the Council of the reformed EU cotton support scheme. The reform maintains 65 % of aid "decoupled" (i.e. no longer linked to production) and 35 % linked to cotton production in the form of area payments. National restructuring programmes are created to facilitate restructuring in the cotton ginning industry and to enhance quality and marketing of the cotton produced. The new scheme will replace the current support arrangement, which was annulled by the European Court of Justice on 7 September 2006
http://europa.eu/rapid/pressReleasesAction.do?reference=IP/08/993&format=HTML&aged=0&language=EN&guiLanguage=en




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