Agrarian boom: how Turkmen business replaces imports and improves food exports
June 24, 2018 | 17:46 |4675
Wheat harvesting campaign is in progress, during which it is planned to harvest 1 million 600 thousand tons of grain at the area of 760 thousand hectares in Turkmenistan this year. The area of wheat cultivation is sufficient to provide the domestic needs and it is a vivid example of food import substitution. The role of the state in the grain industry is still high due to investments in modern equipment – 1 thousand 700-combine harvesters are in the fields, while in other branches of the food industry the role of private business became decisive. Ensuring food independence through the production of private enterprises allows us to equalize the foreign trade structural imbalance caused by the import of food products. The country gets the opportunity to use the freed up funds of hydrocarbon rent for development of infrastructure and industry. The boom in the development of private agricultural production not only replaces imports, providing worthy product quality and attractive price, but also promising for export. Escape from direct state investment into agricultural production allows optimizing the management structures responsible for various industries. The recent inclusion of the State Food Industry Association in the structure of the Ministry of Agriculture and Water Resources was the final step in this consolidation. The new mega-regulator is concentrating its efforts on creating the most favorable conditions for agricultural enterprises.Batyr YUZBASHEV
The Law of Turkmenistan “On State Regulation of Agricultural Development” adopted in June at the session of the Mejlis of Turkmenistan of the sixth convocation was an important step of the agrarian reform. There are an increase in competitiveness, the formation of new economic relations, the creation of a competitive environment for economic entities, and a favorable investment climate among the main tasks of state regulation. At the same time, the social mission of the state is not excluded. The following tasks, such as ensuring sustainable development of rural areas, employment are among them. The law also provides mechanisms for maintaining the stability of the food market.
At a recent session of the Cabinet of Ministers of the country, it was noted that, in January-May 2018, by the Union of Industrialists and Entrepreneurs, the volume of production of agricultural and food products increased by an impressive 64.6 percent compared to the same period last year. The issues of import substitution in the context of the continuation of privatization of enterprises and state property objects and their transformation into joint-stock companies were considered.
The solution of these issues directly provides for the further growth of the role of private business. This approach works. Inefficient enterprises are privatized, passing into private hands; new farms, greenhouses, bakeries grow as mushrooms. At the same time, the state provides the private sector with the most favorable conditions for obtaining land for long-term use, as well as for credit and taxation.
The experience of domestic poultry farming, which meets the modern standards, is used in greenhouse vegetable growing, cattle breeding and deep processing of vegetable and meat and dairy products. Information agencies of the country inform about construction of private greenhouses, cattle-breeding farms, processing enterprises that are underway in all regions of the country.
Thus, the Individual Enterprise “Altyn gala gurluşyk”, which built modern greenhouses at five hectares in the village of “Dovletli” of the district named after S.A. Niyazov of the Dashoguz velayat, counts every season to grow up to 800 tons of tomatoes, including cherry tomatoes.
In the village of Chekir of the Kerki district of the Lebap region, the Economic Society “Ýakyn dost”, against preferential bank loans, built a plant for production of canned fruits and vegetables with annual capacity of 1 million cans.
In the Tejen district of the Akhal region, the Individual Enterprise “Azapkeş” launched a large farm which to produce 3,000 tons of milk and 100 tons of meat per year. The farm is located on the land of 600 hectares.
In the administrative center of the Gorogly district of the Dashoguz region, the Individual Enterprise “Yildirim” put into operation the facility for production of 35 kinds of bakery and confectionery products. Profitability is provided against preferential crediting, technological equipment, and competent marketing. This will expand the range of products up to 50 types of products.
In Mary district of the Mary region, the Individual Enterprise “Sähra gurluşyk” launched a poultry complex to produce 5 million eggs and 500 tons of chicken meat per year. Entrepreneurs rent the land of 100 hectares for a long-term use.
There are dozens of such objects in each region of the country, which built on lands received by entrepreneurs for a long-term use. The small and medium businesses is increasing their contribution to saturation of the country’s market with quality goods. It contributes to the successful implementation of the import substitution program.
