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Why can't farmers get paid for the cotton they sell? - PROBLEM

Why can't farmers get paid for the cotton they sell? - PROBLEM

Country

Today, 10:51

In recent days, allegations have emerged in some regions that farmers have still not received payment for the cotton they delivered last year. According to farmers, although the product has been handed over to companies, payments are delayed for months. This situation creates serious difficulties for people in the countryside whose main income comes from farming. Farmers state that not being able to receive timely compensation for their expenses on fertilizers, machinery, and irrigation both increases their debts and makes it difficult to prepare for the new season. 

Speaking to Modern.az on the topic, Tahir Rzayev, Chairman of the Agrarian Policy Committee of the Milli Majlis and MP for the 86th Aghjabadi constituency, stated that although certain appeals regarding delays in cotton payments were received in the autumn months of last year, the issue was discussed with relevant institutions and subsequently resolved.

According to him, during his visits to the regions at that time, farmers appealed about this problem, and the issue was investigated with both local executive authorities and other relevant institutions:

“This mainly arose due to the untimely sale of the product. Later, the issues were resolved. But this year there is no such appeal. I am in the regions, and I have contacts with entrepreneurs. So far, I have not received any appeals regarding this.”

The MP noted that farmers engaged in cotton production operate under contracts with various companies, and all conditions are clearly reflected in these contracts.

"In some cases, when companies cannot export cotton on time or payments are delayed, there may be certain delays in payments to farmers. In such a case, the payment for cotton is delayed. But this is a temporary situation. Even if there is a delay, that amount must be paid. Because all conditions are reflected in the contracts.”

The committee chairman emphasized that if the problem continues for a long time, farmers have the right to appeal to relevant institutions or the court:

“The farmer can exercise his right and appeal to the relevant authorities. In such cases, the money must be paid and is paid.”

Razi Nurullayev, Deputy Chairman of the Parliament's Agrarian Policy Committee and MP representing the 81st Imishli constituency, also regretfully noted that he also receives appeals regarding this issue.

"Both during meetings with my constituents and from farmers' statements on social networks, we see that there are certain delays in payments for cotton delivered last season, and this has already turned into a real problem. People work for months, deliver their product, but when they cannot get their due on time, it creates legitimate dissatisfaction."

According to the deputy chairman, Imishli is one of the main cotton-growing regions, and a large part of the people living here earn their seasonal income precisely from cotton:

"Therefore, payment delays are not only an economic issue but also a social one. The main concern in the appeals made to me is precisely that farmers cannot plan, and they have difficulty paying their debts.

As for the reasons, several factors can play a role here - disruption of financial flows in the processing or supply chain, liquidity problems of companies, or organizational shortcomings. But regardless of the reason, the result does not change: the farmer must receive his due on time. In this matter, responsibility primarily falls on the institutions that receive and process cotton. At the same time, state structures supervising this area must also ensure the transparent and timely execution of the process."

The MP believes that concrete measures should be taken without delay:

"The farmer must receive the reward for his labor on time. This is both a matter of justice and an important condition for the sustainable development of agriculture," said R. Nurullayev.

Agricultural expert Vahid Maharramov also stated that this problem is not new to us:

"Similar situations are observed in other countries as well, and the issue is mainly related to the existing system. Although associations consisting of cotton producers and processing companies operate, farmers and product producers working in this field also face serious difficulties. Sometimes the produced cotton is sold, but the farmers' labor is not paid on time. Even in some cases, there are delays in payments for the cultivated product.

On the other hand, the fall in cotton prices in the world market further complicates the situation. As prices fall, both producers and processors suffer losses. Their main desire is to be given the opportunity to freely export and market the product. Such problems are also observed in various sectors and cause certain dissatisfactions."

The expert emphasized that, in fact, cotton producers should be given the opportunity to process their cultivated products themselves and then export them to foreign markets:

"This would both increase their income and boost interest in production. Currently, farmers face high costs for planting, cultivation, harvesting, transportation, and other agrotechnical services. The recent increase in the prices of these services has created an additional burden for farmers. Low productivity also negatively affects their income, resulting in payment delays."

He also noted that farmers should be given more freedom:

"Because during product processing, in some cases, the moisture and impurity of cotton are shown to be above the norm, which works to the detriment of the producer. Strict control mechanisms must be established to eliminate these problems.

Azerbaijan is a small country, and it would not be correct to fully compare it with other states. Although the mechanisms applied in some countries work normally, in our country, the interests of individual groups often come to the fore. As a result, producers and farmers suffer the main damage. They are forced to fight against problems caused by climatic conditions, pests, and low-quality production means.

Farmers facing so many difficulties, on the one hand, cannot deliver the product on time and receive payment. However, their main need is to freely market the product and gain sales opportunities."

V. Maharramov also added that this season, serious problems have been observed, especially in large cotton-growing regions such as Imishli, Saatli, and Sabirabad:

"Local executive bodies also did not intervene in the matter at the required level. However, farmers have repeatedly stated that they could not harvest the product on time and that payments were delayed. Although complaints were addressed to the Ministry of Agriculture, the Cabinet of Ministers, and other institutions, no serious results were achieved.

The untimely payment of subsidies is also one of the main problems. In fact, the subsidy should be provided in advance. The farmer should have certain funds in hand before starting cultivation so that he can comply with agrotechnical rules on time and increase productivity and quality.

Currently, the vast majority of farmers do not have reserve funds. They spend their earned income on daily expenses, family needs, and debts. Many have electricity, gas, and water debts. The state should provide financial support to farmers in advance, taking these into account."

The expert reminded that for many years it has been proposed that subsidies be given in advance not only in cotton growing but also in other agricultural sectors:

"Later, that amount can be adjusted against the subsidy. The main issue is that the government and the institutions responsible for the sector should develop real mechanisms to prevent farmers from suffering. The farmer should be able to plant, cultivate, and receive payment for his sold product without delay. Because this is the main concern of the farmer, and these problems should not further aggravate their situation," V. Maharramov concluded.

For comparison, it should be noted that in January of the current year, cotton fiber exports increased by 23.2% compared to the corresponding period of last year, by 33.3% in January-February, and by 43.5% in January-March.

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