Tajikistan has banned the export of onions, potatoes and carrots until the new crop is harvested. This measure may temporarily hold prices down, but it is useless in the long run. Most agricultural producers come to this conclusion.
What’s happened?
The Ministry of Agriculture of the Republic explained the measure by the rising prices for these products and noted that today there are enough stocks of these vegetables in Tajikistan and, if used correctly, they will last until the next harvest.
It usually starts in late March or early April.
Will this measure help prevent a jump in prices for these vegetables?
According to officials, the export ban could have a positive effect on prices, and they should not rise.
The heads of all departments, from the Ministry of Agriculture to Tajkmatlubot, unanimously declare that there are a lot of stocks of vegetables in the storage facilities. The districts and cities also confirmed sufficient stocks of vegetables.
The fact is that back in the fall, on behalf of the government, food stocks were made in all regions. But despite this, prices still rose.
In addition to stocks, officials announced an increase in the production of these products:
- more than 1 million tons of potatoes were harvested
- onions – 673 thousand tons
- carrots – more than 300 thousand tons
Judging by the statistics, a crop has been harvested that exceeds the needs of the population:
- onions – twice
- potatoes and carrots – 1.5 times, taking into account their growing consumption.
Today, the average price for onions has reached 10 somoni, potatoes – 6-7 somoni, carrots – 3-4 somoni per 1 kg, which is much higher than last year’s figures.
The Antimonopoly Service claims that the price of onion has fallen to 4 somoni, however, the real market does not confirm this. Stocks were taken out of the vegetable stores and in some markets in Dushanbe onions were indeed sold at this price, but this, of course, did not affect the overall picture.
Also, compared to last week, the price of potatoes rose by 1 somoni, carrots – by 0.5 somoni.
The other side of the ban
Farmers believe that the export ban is a forced measure and disadvantageous for exporters. Manufacturers do not believe the statistics.
“If more products are grown than the needs of the population, and there are enough reserves in the bins, then there would be no need to ban exports,” they say. “It means that something is wrong with our numbers.”
Bans or restrictions on free trade in agricultural products will in no way help reduce prices, but, on the contrary, will aggravate the already difficult situation of crop growers. Most of them will be forced to sell their products below cost and this can lead to their ruin.
Agronomist Bakhtiyor Khaitboev, on the one hand, agrees with the temporary ban, since this measure, at least a little, reduces tension in the market.
“This is beneficial for officials who report that they have lowered prices and taken care of the people, it is beneficial, of course, for consumers, for whom it is always better when everything is cheap,” he says.
But for those who grow and export vegetables, such administrative measures bring problems, he said.
The specialist listed the main problems that led to the current situation with the vegetable market, primarily with onions.
abnormal weather conditions
Heavy rains hit some regions in late spring, damaging crops. Some areas were simply washed away by heavy rains, they were re-seeded with other crops.
In summer, heat and lack of water reduced the yield of late onions, in some places the plants simply dried up.
The January frosts destroyed some of the stocks of vegetables that were stored in ordinary warehouses due to the lack of specialized modern vegetable stores and refrigerators. No one calculated the exact loss count, but the Ministry of Agriculture announced a loss of 10-12% of stocks and winter crops.
Decrease in production
Tajikistan, according to statistics, grew less onions in 2022 than in 2021 (though not by much – a difference of 2.5 thousand tons), but there were more potatoes and carrots.
But even this statistic is doubtful, as farmers more often give incorrect data to the local offices of the Agency for Statistics. A farmer may claim at the beginning of the growing season that he has planted onions, but during the course of the season it turns out that he is growing alfalfa.
The reasons why they give incorrect data are different. For example, if natural disasters destroyed the early crops of onions, then the farmer could well replace them with later types of products – forage grasses, cabbages or legumes. But in his report, onion is the main crop, although he did not receive this crop.
And it happens trivially – the farmer makes a mistake in the seeds, and then he can plow the field and sow it with another crop.
The problem of vegetable storages
It’s one thing to grow a good crop, it’s another thing to harvest it and save it.
Practice shows that the country has a catastrophic shortage of refrigeration chambers and modern vegetable stores, shops for processing agricultural products. As a result, large crop losses.
13:10 August 26, 2022
On the example of an onion, you can see how serious this problem is. Starting from the end of April, harvesting of early vegetables begins. Not everyone can sell everything fresh on the market. Some part of the harvest must be saved, and simple warehouses-farmers’ barns are not suitable for long-term storage. Modern vegetable stores are not available in all areas.
A farmer who goes to negotiate with the owners of such storage facilities pays them a certain amount. The longer the storage, the more it costs. As a result, when he picks up his crop, he is forced to add to the product and the cost of vegetable storage and transportation. And this, of course, is reflected in the wholesale price of the product.
High cost of production
Growing onions is a labor-intensive and costly production. Starting from plowing the land and sowing seeds, ending with the harvest and its sale, the producer spends a lot of resources.
The annual increase in the price of fertilizers, fuels and lubricants, payment for water supply services, transport and hired workers increases the cost of growing products.
Farmers are interested in exporting part of the crop from the republic in order to sell it there at higher prices. Thus, the profit from export covers losses from the sale of products on the domestic market, and the profit remains.
And bans on raising prices or sending products for export are not beneficial to the manufacturer. The market itself must determine at what price to sell the product. If there is a lot of production, we export the surplus abroad, if there is little, on the contrary, we import it from other countries in order to ensure the stability of the domestic market.
Features of the national consumption of onions
The experts also drew attention to the high consumption of onions and carrots in Tajikistan. Unlike most countries, where the real consumption of onions does not exceed 10-15 kg per year per person, in Tajikistan, as in neighboring Uzbekistan, it is, according to rough estimates, more than 35 kg.
The thing is that these vegetables are used in absolutely all national dishes (it’s like with flour). In addition, there are a lot of folk events in our countries – weddings, commemorations, seeing off and meeting guests. And despite the streamlining of traditions, even within the framework of permitted events, they cook a lot for them.
Lack of forecasts
In Tajikistan, it happens every year that one type of agricultural product is in short supply and prices for it, accordingly, make a jump, and the other is in such abundance that, due to low prices, producers destroy products right on the field.
17:35 December 22, 2022
Over the past five years, we have seen this on the example of onions, garlic, carrots, potatoes, which have greatly increased in price in a certain period of the year. And there were years when farmers simply did not harvest onions, cabbages, beets from the fields because of low prices, and many years ago there was even a case when in one of the regions they crushed tomatoes with tractors (if only to spend money on the road – do not carry at the insistence harvest authorities in the city).
Farmers need forecasts from scientists and departments that would study trends in the vegetable and fruit market and recommend what to sow. But such forecasts are either not dealt with, or these studies do not reach farmers.
On the other hand, dekhkans are forced to grow certain crops by local authorities – at their personal discretion and without taking into account and understanding local conditions.
There are cases when dekhkans are forced to grow cotton in small plots, where it only brings a loss, since cotton can only be profitable in large areas. Or, when in hot regions the population and small farmers are forced to grow potatoes, where it cannot produce a large crop.
Market regulation
Consumers complain about high prices, and farmers complain about low prices. Both are right in their judgments, and both are victims of dealers.
16:18 February 6
Dekhkanin from the field sells his products at low prices, for example, carrots and cabbage were sold this year for 0.5-1 somoni. And in the bazaar they cost 3-4 somoni per kg, that is, retail prices are 3-4 times higher than farm prices.
According to experts, there needs to be control over buyers and sellers. Farmers’ products usually reach the bazaar through a chain of intermediaries, and sometimes we buy vegetables from the fourth or fifth hand.
What else threatens the export ban?
Exports can drive up the prices of these products in the domestic market. And it can make it even worse – farmers can simply refuse to grow crops that are forbidden to be exported. As a result, there may be a shortage of these products already in the domestic market.
Is there a way out?
Yes, for example, it is possible to buy produce from farmers during the harvest season at affordable prices and stock up large food supplies in the winter. You can create conditions for the storage and processing of this crop. And also – to build more enterprises for the processing of agricultural products, so that there is enough for the population and for sale abroad.
Source: asiaplustj
