Agriculture is one of the key sectors of national economy, to which dynamic development Turkmenistan attaches the utmost attention. As it was informed, President Gurbanguly Berdimuhamedov signed number of Resolutions outlining the complex of measures of the government support and economic stimulation of national agricultural producers.
For example, new government purchase price for wheat and cotton are introduced from 2019. As it was informed by the Ministry of Agriculture and Water Management, the price for one ton of wheat increased two times from 400 to 800 manats.
Prices for cotton are set taking into account the quality of product. Starting from the first day until October 15, the price of one tone of medium fibre cotton will be 1,500 manats, from October 15 to November 15 – 1, 430 manats and from November 15 to the end of the harvest – 1,365 manats.
In its turn, the price for one ton of fine-fibre cotton, elite grades of seeding cotton will be 2,000 manats from the beginning of the harvest to October 15, from October 15 to November 15 – 1,910 manats, from November 15 to the end of the harvest – 1,820 manats.
Income of the farmers will grow due to these measures. It is worth mentioning that according to the priorities of agrarian policy, various state benefits including those aimed at the reduction of production cost are given to agricultural producers in our country. This is enshrined in the Laws of Turkmenistan on the State Regulation of Development of Agriculture, on Grain Production, on Cotton Production and other legal and regulatory acts.
In particular, minimum fee for land is set for the agrarians and they are exempt from taxes. Provision of equipment, seeds, mineral fertilizers, irrigation water and other services are given to the farmers and farming associations on beneficial terms.
For example, at present time, full cost of production expenses for growing of wheat is 925 manats for one hectare and the expenses of the farmers are 448.15 manats taking into account the benefits. Next year, actual cost will be 1,449.77 manats for one hectare while the farmers will reimburse only 687.54 manats. Therefore, more than half of the farmers’ expenses would be subsided by the Government according to the Resolutions of President Gurbanguly Berdimuhamedov.
In addition, based on the above-mentioned Resolution of the President of Turkmenistan, a credit line for settlement of the payments with cotton producers was opened from October 5, 2018. Depending on the grade of cotton, they are paid 0.60 or 0.80 manats per one kg of raw cotton.
President Gurbanguly Berdimuhamedov pointed out the necessity to activate the reforms in agriculture in his speech at the first session of the People’s Council in September.
Following this, the President of Turkmenistan made number of specific proposals related to the improvement of the profitability of agriculture, rational use of land and water resources, improvement of soil conditions of the fields, provision with irrigation water as well as wide attraction of private entrepreneurs to agricultural complex.
Provision of the right to leave the production made beyond contractual obligations and to sell it for free prices to farming associations and farming joint stock ventures was named among proposed measures.
Having focused on the importance of the increment of the government procurement prices for cotton and wheat as well as setting out additional payment for production of high quality seeds, the President highlighted that these measures would support the stimulation of the farmers to produce good yields.
Specialized farming associations and agricultural product processing facilities are to satisfy the demand of the population on fruits and vegetables.
It is necessary to elaborate on legal aspects of the establishment of private farms specialized in livestock breeding and to provide them with lands for forage production for improvement of livestock branch and stimulation of its development by attraction of private investments and increment of livestock, the Head of the State highlighted.
These proposals, which were unanimously agreed by the participants of national forum, made the base of the Resolution of the People’s Council on Further Improvement of Reforms in Agricultural Sphere, which is steadily implemented these days.
Having signed the documents, the Head of the State approved the volumes of special land funds of agricultural purpose allocated from the cultivated lands of farming associations, from which joint stock ventures of Turkmenistan, farming association and other legal entities and citizens receive land plots for 99 years.
In the first case, more than 70 percent of allocated agricultural lands have to be used for growing of wheat, cotton and other agricultural crops of the State order on contractual base. Remaining land can be sown with other crops for scientifically grounded crop rotation. Land plots provided for the second fund have to be used for cultivation of vegetable and cucurbitaceous crops, potato, grapes ad fruit trees.
In addition, farming associations and entities, agricultural joint stock ventures and scientific and research institutes, private entrepreneurs and other agricultural producers would be able to receive beneficial bank loans up to 10 years. It includes the loans for procurement of agricultural equipment, machines and tools, bulldozers and excavators, pipes for irrigation with one percent interest rate as well as the loans for investment projects related to development of poultry and livestock farming with five percent interest rate for 10 years.
It is worth highlighting that objectives set out by Turkmen leader for modernization of agricultural complex are solved comprehensively. Big investments are sent for the construction of new livestock and poultry farming complexes, hothouse farms, agricultural facilities processing raw materials and making the variety of high quality food products.
The State procures modern agricultural equipment to the volumes providing the completion of field works in optimum time. grain and cotton harvesters, various tractors and other equipment from leading world manufacturers like John Deere, ClAAS and other are at the disposal of the farmers.
Special attention is paid to the diversification of agriculture, introduction of scientifically based methods of cultivation of agricultural crops taking into account soil and climate conditions, development of selection and seed production.
Solution of the objectives of development of national agricultural complex is directly related to the objectives of national plan. This is visually indicated by the adopted important programmes implemented in the country including new edition of National Programme of the President of Turkmenistan on changing of social and living conditions of rural population until 2020.
Due to the reforms, agricultural production in Turkmenistan becomes very profitable business providing food abundance and making significant contribution to export potential of the country.
For example, new government purchase price for wheat and cotton are introduced from 2019. As it was informed by the Ministry of Agriculture and Water Management, the price for one ton of wheat increased two times from 400 to 800 manats.
Prices for cotton are set taking into account the quality of product. Starting from the first day until October 15, the price of one tone of medium fibre cotton will be 1,500 manats, from October 15 to November 15 – 1, 430 manats and from November 15 to the end of the harvest – 1,365 manats.
In its turn, the price for one ton of fine-fibre cotton, elite grades of seeding cotton will be 2,000 manats from the beginning of the harvest to October 15, from October 15 to November 15 – 1,910 manats, from November 15 to the end of the harvest – 1,820 manats.
Income of the farmers will grow due to these measures. It is worth mentioning that according to the priorities of agrarian policy, various state benefits including those aimed at the reduction of production cost are given to agricultural producers in our country. This is enshrined in the Laws of Turkmenistan on the State Regulation of Development of Agriculture, on Grain Production, on Cotton Production and other legal and regulatory acts.
In particular, minimum fee for land is set for the agrarians and they are exempt from taxes. Provision of equipment, seeds, mineral fertilizers, irrigation water and other services are given to the farmers and farming associations on beneficial terms.
For example, at present time, full cost of production expenses for growing of wheat is 925 manats for one hectare and the expenses of the farmers are 448.15 manats taking into account the benefits. Next year, actual cost will be 1,449.77 manats for one hectare while the farmers will reimburse only 687.54 manats. Therefore, more than half of the farmers’ expenses would be subsided by the Government according to the Resolutions of President Gurbanguly Berdimuhamedov.
In addition, based on the above-mentioned Resolution of the President of Turkmenistan, a credit line for settlement of the payments with cotton producers was opened from October 5, 2018. Depending on the grade of cotton, they are paid 0.60 or 0.80 manats per one kg of raw cotton.
President Gurbanguly Berdimuhamedov pointed out the necessity to activate the reforms in agriculture in his speech at the first session of the People’s Council in September.
Following this, the President of Turkmenistan made number of specific proposals related to the improvement of the profitability of agriculture, rational use of land and water resources, improvement of soil conditions of the fields, provision with irrigation water as well as wide attraction of private entrepreneurs to agricultural complex.
Provision of the right to leave the production made beyond contractual obligations and to sell it for free prices to farming associations and farming joint stock ventures was named among proposed measures.
Having focused on the importance of the increment of the government procurement prices for cotton and wheat as well as setting out additional payment for production of high quality seeds, the President highlighted that these measures would support the stimulation of the farmers to produce good yields.
Specialized farming associations and agricultural product processing facilities are to satisfy the demand of the population on fruits and vegetables.
It is necessary to elaborate on legal aspects of the establishment of private farms specialized in livestock breeding and to provide them with lands for forage production for improvement of livestock branch and stimulation of its development by attraction of private investments and increment of livestock, the Head of the State highlighted.
These proposals, which were unanimously agreed by the participants of national forum, made the base of the Resolution of the People’s Council on Further Improvement of Reforms in Agricultural Sphere, which is steadily implemented these days.
Having signed the documents, the Head of the State approved the volumes of special land funds of agricultural purpose allocated from the cultivated lands of farming associations, from which joint stock ventures of Turkmenistan, farming association and other legal entities and citizens receive land plots for 99 years.
In the first case, more than 70 percent of allocated agricultural lands have to be used for growing of wheat, cotton and other agricultural crops of the State order on contractual base. Remaining land can be sown with other crops for scientifically grounded crop rotation. Land plots provided for the second fund have to be used for cultivation of vegetable and cucurbitaceous crops, potato, grapes ad fruit trees.
In addition, farming associations and entities, agricultural joint stock ventures and scientific and research institutes, private entrepreneurs and other agricultural producers would be able to receive beneficial bank loans up to 10 years. It includes the loans for procurement of agricultural equipment, machines and tools, bulldozers and excavators, pipes for irrigation with one percent interest rate as well as the loans for investment projects related to development of poultry and livestock farming with five percent interest rate for 10 years.
It is worth highlighting that objectives set out by Turkmen leader for modernization of agricultural complex are solved comprehensively. Big investments are sent for the construction of new livestock and poultry farming complexes, hothouse farms, agricultural facilities processing raw materials and making the variety of high quality food products.
The State procures modern agricultural equipment to the volumes providing the completion of field works in optimum time. grain and cotton harvesters, various tractors and other equipment from leading world manufacturers like John Deere, ClAAS and other are at the disposal of the farmers.
Special attention is paid to the diversification of agriculture, introduction of scientifically based methods of cultivation of agricultural crops taking into account soil and climate conditions, development of selection and seed production.
Solution of the objectives of development of national agricultural complex is directly related to the objectives of national plan. This is visually indicated by the adopted important programmes implemented in the country including new edition of National Programme of the President of Turkmenistan on changing of social and living conditions of rural population until 2020.
Due to the reforms, agricultural production in Turkmenistan becomes very profitable business providing food abundance and making significant contribution to export potential of the country.
