Uzbek Farmers Suffer From Export Restrictions
Uzbek Farmers Suffer From Export Restrictions
Restrictions on the export of agricultural produce have helped stabilise domestic food prices in Uzbekistan, but have also meant that local farmers are losing out on significant profits they would have earned from sales abroad, NBCentralAsia observers say.
On July 31, the state news agency UzA reported a nationwide campaign to ensure a stable supply of food and organise fruit and vegetable deliveries.
“Exports of meat and agricultural products from Uzbekistan are prohibited in an effort to fully satisfy domestic demand… such measures contribute to people’s welfare,” the agency reported.
The government imposed the ban because of concerns about a possible food shortages and price rises ahead of the autumn and winter season.
An informal ban on exports of farm produce has been in place since late June. By that point it was apparent the vegetable, fruit, potato, melon and gourd crops were large because of the warm spring, and prices at the markets fell to last year’s levels. However, due to the export ban, farmers were unable to sell the excess in neighbouring countries.
NBCentralAsia observers in Uzbekistan say the ban on exports has meant farmers and traders are losing the income they would have got from selling food in neighbouring Central Asian states, where prices are higher.
“We are forced to content ourselves with minimum earnings, when we had been expecting to earn more by selling vegetables, apricots, peaches, grapes and watermelons at markets in Kazakstan,” said one Uzbek vegetable grower.
Official statistics indicate that of the ten million tons of fruit and vegetables grown in Uzbekistan every year, one third goes to Russia and Kazakstan.
Tatyana Yakimenko, who heads the customs revenues department for the South Kazakstan region, told NBCentralAsia that Uzbek imports account for almost a tenth of Kazakstan’s demand for vegetables.
Uzbek traders have traditionally had a strong presence in the food markets of Kazakstan, where they can earn several times as much as they would at home. Kazakstan is expensive by Central Asian standards.
The curtailment of Uzbek imports could have a lasting effect. As Eduard Poletaev, chief editor of the Mir Yevrazii news magazine in Almaty, points out, the food trade in Kazakstan has rapidly reoriented itself and turned to sellers from countries further away. China, Iran and Pakistan are now leading suppliers.
This process is evolving rapidly and may have a long-term effect on Uzbekistan’s agricultural sector. “It’s possible that the Uzbek traders will lose their niche in our marketplace,” said Poletaev.
Farhad Talipov, a political analyst from Tashkent, notes that the Uzbek government tries to regulate “market processes with non-market methods”, and warns that state intervention of this kind could ultimately lead to substantial losses. It will also make life harder for farmers who are dependent on growing fruits and vegetables.
Tashpulat Yuldashev, an émigré Uzbek political scientist, agrees with this view, and estimates that the restrictive measures have already meant that local farmers have lost about 50 per cent of the profits they could have counted on from fruit and vegetable exports.
“When the borders were open and they could export, they would be counting on setting aside some of their income to develop their farms and buy seeds and seedlings, and spend the rest on household needs,” he said. “Now they are going to have a very difficult time of it.”
(NBCA is an IWPR-funded project to create a multilingual news analysis and comment service for Central Asia, drawing on the expertise of a broad range of political observers across the region. The project ran from August 2006 to September 2007, covering all five regional states. With new funding, the service is resuming, covering only Uzbekistan and Turkmenistan for the moment.)
On July 31, the state news agency UzA reported a nationwide campaign to ensure a stable supply of food and organise fruit and vegetable deliveries.
“Exports of meat and agricultural products from Uzbekistan are prohibited in an effort to fully satisfy domestic demand… such measures contribute to people’s welfare,” the agency reported.
The government imposed the ban because of concerns about a possible food shortages and price rises ahead of the autumn and winter season.
An informal ban on exports of farm produce has been in place since late June. By that point it was apparent the vegetable, fruit, potato, melon and gourd crops were large because of the warm spring, and prices at the markets fell to last year’s levels. However, due to the export ban, farmers were unable to sell the excess in neighbouring countries.
NBCentralAsia observers in Uzbekistan say the ban on exports has meant farmers and traders are losing the income they would have got from selling food in neighbouring Central Asian states, where prices are higher.
“We are forced to content ourselves with minimum earnings, when we had been expecting to earn more by selling vegetables, apricots, peaches, grapes and watermelons at markets in Kazakstan,” said one Uzbek vegetable grower.
Official statistics indicate that of the ten million tons of fruit and vegetables grown in Uzbekistan every year, one third goes to Russia and Kazakstan.
Tatyana Yakimenko, who heads the customs revenues department for the South Kazakstan region, told NBCentralAsia that Uzbek imports account for almost a tenth of Kazakstan’s demand for vegetables.
Uzbek traders have traditionally had a strong presence in the food markets of Kazakstan, where they can earn several times as much as they would at home. Kazakstan is expensive by Central Asian standards.
The curtailment of Uzbek imports could have a lasting effect. As Eduard Poletaev, chief editor of the Mir Yevrazii news magazine in Almaty, points out, the food trade in Kazakstan has rapidly reoriented itself and turned to sellers from countries further away. China, Iran and Pakistan are now leading suppliers.
This process is evolving rapidly and may have a long-term effect on Uzbekistan’s agricultural sector. “It’s possible that the Uzbek traders will lose their niche in our marketplace,” said Poletaev.
Farhad Talipov, a political analyst from Tashkent, notes that the Uzbek government tries to regulate “market processes with non-market methods”, and warns that state intervention of this kind could ultimately lead to substantial losses. It will also make life harder for farmers who are dependent on growing fruits and vegetables.
Tashpulat Yuldashev, an émigré Uzbek political scientist, agrees with this view, and estimates that the restrictive measures have already meant that local farmers have lost about 50 per cent of the profits they could have counted on from fruit and vegetable exports.
“When the borders were open and they could export, they would be counting on setting aside some of their income to develop their farms and buy seeds and seedlings, and spend the rest on household needs,” he said. “Now they are going to have a very difficult time of it.”
(NBCA is an IWPR-funded project to create a multilingual news analysis and comment service for Central Asia, drawing on the expertise of a broad range of political observers across the region. The project ran from August 2006 to September 2007, covering all five regional states. With new funding, the service is resuming, covering only Uzbekistan and Turkmenistan for the moment.)
