International Conference on
Agricultural Transformation in Asia: Policy
Options for Food and Nutrition Security
THE ROLE O...
Agriculture Sector
Tajikistan is the smallest and poorest of the
Central Asian economies, with a population of 7.7
million...
Fertilizer use efficiency
0.0
20.0
40.0
60.0
80.0
100.0
Wheat Cotton Potatoes Vegetables
58.7
28.2
13.8
2.5
95.7
51.1
98.5...
Fertilizer use disparities by regions (kg/ha)
116
93
137
94
172
143
73
161
143
113
113
46
153
103
100
120
71
128
119
116
0...
Fertilizer Requirement and Application (nutrients)
0
50
100
150
200
250
Demand
Application
100
50
80
60
'000MT
K
P
N
FERTILIZER SUPPLY CHAIN
Removal of VAT
Customs duty -
$60
$528
Product cost - $260
Transport cost - $64
Importer interest ...
MARKETING AND DISTRIBUTION
IMPORTER
WHOLE SALERS
RETAILERS
LARGE
FARMERS
SMALL &
MEDIUM
FARMERS
GINNER
FARMERS
(cotton pro...
Fertilizer retail price difference in Tajikistan by
geographic regions (ammonium nitrate), 2013
- 100.0 200.0 300.0 400.0 ...
Seasonal fertilizer price volatility
0.00
5.00
10.00
15.00
20.00
25.00
30.00
Fertilizer Price changes in 2010, USD/50 Kg
A...
Major factors impacting on Fertilizer
price
• Oligopoly of market;
• International price change;
• Late fertilizer supply ...
The Map of Domestic Fertilizer supply
KHUJAND
HISSOR
(Dushanbe)
KURGANTUBE
Fertilizer Imports to Tajikistan
Export Country 2000 2005 2007 2008 2010 2011 2012
Afghanistan 0 0 0 6459 12352 8683 20084...
Share of fertilizer import by country
Afghan
istan
0%
Kazakhstan
2%
Kyrgyzstan
0%
Pakistan
0%
Russia
19%
Uzbekistan
78%
Ot...
Key Challenges for Fertilizer use and effecting
• high price of fertilizer and poor quality;
• No local manufacture
• abse...
• Improved contacts and consistent supply
sources;
• Support national wholesaler companies
• Improved market information a...
THANK YOU!
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The Fertilizer sector in Tajikistan- Narzimurod Kholov

Published on: Mar 3, 2016
Published in: Technology      Business      
Source: www.slideshare.net


Transcripts - The Fertilizer sector in Tajikistan- Narzimurod Kholov

  • 1. International Conference on Agricultural Transformation in Asia: Policy Options for Food and Nutrition Security THE ROLE OF FERTILIZER IN TAJIKISTAN SEPTEMBER 25-26, 2013 SIEM REAP, CAMBODIA
  • 2. Agriculture Sector Tajikistan is the smallest and poorest of the Central Asian economies, with a population of 7.7 million, of whom 49% live below the poverty line. The economy has grown strongly since 2000, with per capita GDP increasing from $US 139 in 2000 to $US 935 in 2011. With 20% of GDP and 53% of employment the agriculture sector has a major influence on economic performance. Agriculture sector growth also has a major impact on poverty reduction, as 76% of Tajikistan’s poor live in rural areas
  • 3. Fertilizer use efficiency 0.0 20.0 40.0 60.0 80.0 100.0 Wheat Cotton Potatoes Vegetables 58.7 28.2 13.8 2.5 95.7 51.1 98.5 99.2 % % of fertilizer use increase % of yeild increase Crop Fertilizer use, kg/ha Yield, t/ha % of fertilizer use increase % of yeild increase2000 2012 2000 2012 Wheat 32 50 1,17 2,29 58,7 95,7 Cotton 113 145 1,41 2,13 28,2 51,1 Potatoes 152 173 11,87 23,56 13,8 98,5 Vegetables 115 118 11,3 22,51 2,5 99,2
  • 4. Fertilizer use disparities by regions (kg/ha) 116 93 137 94 172 143 73 161 143 113 113 46 153 103 100 120 71 128 119 116 0 20 40 60 80 100 120 140 160 180 200 Tajikistan GBAO Sogd oblast Khatlon oblast RRS Kg/ha 2000 2005 2010 2012
  • 5. Fertilizer Requirement and Application (nutrients) 0 50 100 150 200 250 Demand Application 100 50 80 60 '000MT K P N
  • 6. FERTILIZER SUPPLY CHAIN Removal of VAT Customs duty - $60 $528 Product cost - $260 Transport cost - $64 Importer interest (12%) Verification, Deliv-$4 Overheads charges-$20 Wholesaler interest (including all charges) Transport charges$30 Retailer interest - $40 VAT (18%) -$47 Customs duty - (5%) -$13 $324 $24 $50 $60 $70 $60 $458 $518 $588 $384 $408
  • 7. MARKETING AND DISTRIBUTION IMPORTER WHOLE SALERS RETAILERS LARGE FARMERS SMALL & MEDIUM FARMERS GINNER FARMERS (cotton producer) Based on future deal
  • 8. Fertilizer retail price difference in Tajikistan by geographic regions (ammonium nitrate), 2013 - 100.0 200.0 300.0 400.0 500.0 600.0 700.0 800.0 Sogd Kurgantube Panjakent Hissor Kulob Gharm USD per MT Sogd Kurgantube Panjakent Hissor Kulob Gharm Series1 536.1 597.9 618.6 639.2 701.0 701.0 Fertilizer Price per MT by region
  • 9. Seasonal fertilizer price volatility 0.00 5.00 10.00 15.00 20.00 25.00 30.00 Fertilizer Price changes in 2010, USD/50 Kg Ammonium nitrate Urea Superphosphate
  • 10. Major factors impacting on Fertilizer price • Oligopoly of market; • International price change; • Late fertilizer supply at national and local level; • No real competition among wholesalers; • High local transportation cost; • Poor infrastructure; • Seasonal price volatility;
  • 11. The Map of Domestic Fertilizer supply KHUJAND HISSOR (Dushanbe) KURGANTUBE
  • 12. Fertilizer Imports to Tajikistan Export Country 2000 2005 2007 2008 2010 2011 2012 Afghanistan 0 0 0 6459 12352 8683 20084 China 0 0 0 3 1197 1122 596 Kazakhstan 1226 11740 8664 0 0 1049 5190 Kyrgyzstan 0 8 0 7002 992 926 3868 Pakistan 0 0 0 0 0 2587 25361 Russia 16486 2381 1305 2072 5029 9791 10619 Uzbekistan 68052 81629 134006 5151 5077 0 88 Other 1035 60 0 316 2217 797 670 Total 86799 95818 143975 21003 26864 24955 66476 Imports are likely to continue to be the only source for the next few years. Fertilizers are imported by rail and truck from: Russia, Kazakhstan, Afghanistan, Pakistan. fertilizer Import from Uzbekistan played a dominant role for, starting from 2008 imports from Uzbekistan substantially cuts, in2011 completely stopped . ) Source: Tajikistan Customs Agency, www.customs.tj
  • 13. Share of fertilizer import by country Afghan istan 0% Kazakhstan 2% Kyrgyzstan 0% Pakistan 0% Russia 19% Uzbekistan 78% Other 1% 2000 Afghanistan 0% Kazakhstan 12% Kyrgyzstan 0% Pakistan 0% Russia 3% Uzbekistan 84% Other 1% 2005 Afghanistan 34% Kazakhstan 4%Kyrgyzstan 4% Pakistan 10% Russia 39% Uzbekistan 0% Other 9% 2011 Afghanistan 30% Kazakhstan 8% Kyrgyzstan 6% Pakistan 38% Russia 16% Uzbekistan 0% Other 2% 2012
  • 14. Key Challenges for Fertilizer use and effecting • high price of fertilizer and poor quality; • No local manufacture • absence fertilizer production plant(s) and necessary raw materials; • No enough information access and training on fertilizer use; • Infrastructure (long distance from main market to other regions; • not available in crop cultivation sessions and in local markets; • Price increasing during cultivation season; • High cost and poor access to finance at all levels • No consistent linkage between importers and suppliers • Lack of information on fertilizer price, local markets availability; • High transport cost, road Tax, and border issues; • VAT and import duties • Gross nutrient use imbalance; • Low yields, low farm incomes; • Lack of extension service and no soil testing on fertilizer
  • 15. • Improved contacts and consistent supply sources; • Support national wholesaler companies • Improved market information and statistics • Removal of V.A.T. and Customs Duty • Government support on fertilizer supply and storage; Recommendations
  • 16. THANK YOU!

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