Central Asian Farmers Complain of Declining Returns from ‘White Gold’
Facing Tough Times, Central Asian Cotton Farmers Grapple With Low Prices, Water Woes
Cotton has played a significant role in the history of Central Asia, with the crop being associated with Russian imperial expansion, labor exploitation, and environmental disaster. It is an industry that still spans across many territories in the region and employs millions of people each year. However, current low wholesale prices being offered to growers this season has dealt a major financial blow to many households in the region.
Central Asian economies have been hit hard as international prices for raw cotton surged at the end of 2022, only to correct dramatically by the middle of 2023. Farmers are struggling as international cotton prices have fallen to less than $0.80 per pound. This economic pressure comes amid global inflation and supply-chain uncertainty that are factors that would typically drive prices up.
Uzbekistan is the top cotton producer in the region and one of the world’s biggest exporters, but neighboring Turkmenistan is also a leading global producer. Additionally, the cotton sector plays a significant role in the agricultural economies of Kazakhstan, Kyrgyzstan, and Tajikistan. Farmers are feeling the impact of the plummeting prices, with many saying that they barely cover production costs, let alone leave a profit.
In Uzbekistan, reforms to the cotton sector have given rise to privately owned, vertically integrated companies known as clusters that have taken over the cotton harvest, once tightly controlled by the state. These clusters have led to inflated input costs for farmers and have limited their freedom to decide which crops to grow, creating new challenges for those in the industry.
Uzbekistan’s neighboring country, Tajikistan, and Turkmenistan still struggle with forced or child labor issues within their cotton sectors. Reports reveal that these countries continue to use forced labor to produce cotton despite efforts to curb these practices.
The environmental impact of cotton cultivation is another major issue in the region. The crop’s demands for irrigation have long placed substantial stress on the water system, leading to severe environmental consequences, particularly in relation to the Aral Sea. Central Asian countries are now facing further threats to their water supply due to the impact of climate change and large-scale irrigation projects in neighboring Afghanistan.
Amidst the challenges, Central Asian governments are working to address water conservation, with Uzbekistan’s president emphasizing the importance of inculcating the idea that water is not free in order to conserve supplies. However, for many Central Asian cotton farmers, this summer’s droughts have highlighted the significant risks and challenges that the region’s main cash crop might face in the future. As the region grapples with low prices and environmental challenges, the sustainability of Central Asia’s cotton industry remains uncertain.
