August 7 2008, 17:10

NBCA: Uzbek producers of fruits and vegetables bear losses due to export restrictions

Restrictions, introduced by the government of Uzbekistan for export of agricultural products, were effective to stabilize the prices on the domestic market, but negatively affected the farmers, which bear considerable losses, reported NBCA orrespondents, on August 7.

On July 31, the state informational agency UzA reported that the country undertakes measures to provide stable supply to the food market and organize works on procurement of fruits and vegetable products.

"In order to satisfy needs of population in meat and agricultural products, their export from Uzbekistan is prohibited, such measures promote prosperity of the people",-the agency informs.

These measures were introduced by the government of Uzbekistan because of fears of food crisis and possible rise in prices in the eve of autumn-winter period. Non-official export ban for agricultural products was introduced by the athorities in the end of June, when after warm summer the farmers started receiving good harvest of vegetables, fruits, potato and melons.

As a result, the prices on the local markets fell down to the level of the last year, and the domestic market was saturated. However, ban for products export disable the agricultural producers to sell vegetables and fruits in the neighboring countries.

NBCA correspondents in Uzbekistan report that the governmental measures negatively influenced farmers and entrepreneurs, engaged in selling of agricultural products on the markets of the neighboring countries, CA-NEWS informed.

One of the Uzbek vegetable-grower complained that now they have to be satisfied with minimal profit whereas expected to receive good profit from vegetables, apricots, peaches, grapes, and melons sales on the market of Kazakhstan.

According to the statistics data, annually the agrarian sector of the country produces nearly 10 mln tonnes of vegetables and fruits. The one third of the harvest is exported to Russia and Kazakhstan, where it is in good demand.

Tatyana Yakimenko, the head of the department of customs revenue at the Customs Control Department of the Southern Kazakhstan oblast told to NBCA that Kazakhstan satisfies almost the one tenth of needs in vegetables at the expense of the Uzbek import.

Uzbek entrepreneurs traditionally take stable trade niche on the Kazakh markets and receive good profit from selling of their agricultural products due to price margin. Kazakhstan is one of the most expensive countries of the region, where prices for food products by several times higher than in the neighboring countries.

However, currently the Uzbek agrarian obviously lost.

Edward Poletayev, the editor-in-chief of the Kazakh journal "Eurasian world" ("Mir Eurasii") from Alma-Ata told that after introduction of trading restrictions, Kazakh markets became swiftly reoriented to the exporters from far abroad countries and China, Iran, Pakistan became the leading suppliers of the products.

The process passes by rapid rates and in future this factor may negatively influence the Uzbek agrarian business.

"It is possible that Uzbek entrepreneurs may lose their business segments on our markets ",- Poletayev considers.

Farhad Talipov, the analyst from Tashkent mentions that the governmental attempts to regulate "the market processes by the nonmarket measures" would lead only to heavy losses and complicate life of the rural workers, depending on cultivation of vegetables and fruits.

Tashlupat Yuldashev, Uzbek political scientist in emigration, agrees with this opinion. According to his estimates, due to introduced restrictive measures, the local farmers have already lost nearly 50% of the profit that they expected to obtain from the export of fruits and vegetables.

"Where the borders were open for export, the agricultural producers planned to direct the part of the future revenue to the farm development, purchase of seeds, young plant and other needs of their families, however today they it would be hard for them", - the political scientist told.