Cotton - The Times Of Central Asia

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Kazakhstan’s Cotton Sector Continues to Shrink

Kazakhstan’s cotton industry is in protracted decline, with key indicators – acreage, harvest volume, and profitability – showing sustained deterioration. Analysts at Energyprom.kz report that small farms, which dominate the sector, are increasingly abandoning cotton in favor of less expensive crops. A Smallholder Sector in Crisis According to the National Statistics Bureau, raw cotton production totaled 61.2 billion KZT ($117.4 million) in 2023, down 8% in real terms from the previous year. This marked the second consecutive year of decline in the physical volume index (PVI), reflecting waning interest in cotton cultivation. The sector comprises around 25,000 agricultural enterprises and employs approximately 70,000 people. Small farms produce 91% of total output but are experiencing the steepest decline: their PVI fell to 88.6% in 2023. In contrast, large enterprises, which account for a minor share of production, saw a 50.7% increase in output. Cotton is grown exclusively in the Turkestan region, where the cultivated area has shrunk from 223,700 hectares in 2003 to just 106,400 hectares in 2023. The gross harvest last year was 301,700 tons, 35.4% less than two decades ago. Modern agricultural technologies have helped maintain relatively stable yields despite shrinking acreage. Water Shortages Undermine the Industry The Ministry of Agriculture identifies severe irrigation water shortages as the primary obstacle to cotton production. While some losses have been mitigated through drip irrigation systems, such technologies are affordable only to large or investor-backed farms. For most smallholders, cotton cultivation has become too costly, prompting a shift to alternative crops. The problem is systemic. In a parliamentary inquiry, Senator Murat Kadyrbek highlighted inadequate financing for agronomic measures and low purchase prices, which leave many farmers barely covering operating costs. Producers are seeking loan deferrals until they can secure income from harvests. Eighty-five percent of Kazakhstan’s cotton is exported as raw material, with only 15% processed domestically. Even this limited share struggles to find buyers. In 2023, domestic processing plants operated at just 19.5% of their design capacity, according to the Bureau of National Statistics. Despite the launch of new facilities, including some with foreign investment, processing remains the industry's weakest link. Rising Costs, Competitive Pressures High processing costs pose a major challenge. Processing cotton in Kazakhstan costs 150,000-170,000 KZT (approximately $300) per tonne, triple the cost in neighboring Uzbekistan and China. Compounding the issue is poor fiber quality. While the global market demands fiber lengths of 35-60 cm, Kazakh cotton typically falls in the 20-25 cm range. “To improve product quality and competitiveness, a dedicated state program for cotton development is urgently needed,” members of parliament urged. They advocate for collaborative action from both government agencies and producers to revitalize the sector.

European Union Investments Agriculture Cotton Green economy Environment Textile industry Cotton Reform

Tajikistan Pursues Cotton Reform with EU Backing

The European Union’s support for green transitions presents a real opportunity for Tajikistan to achieve sustainable agricultural development, particularly in the cotton industry, according to Mizrob Amirbekov, an agricultural development expert. Amirbekov highlighted this potential, underscoring the importance of international assistance in modernizing the sector, addressing environmental and social challenges, and establishing a fair and transparent production system. Rising Demand, Persistent Problems As global demand for environmentally friendly textiles grows, Tajikistan has a unique chance to establish a sustainable model for cotton production, Amirbekov explained. Increased interest in natural fabrics, driven by both demographic growth and technological advancements, is pushing the industry toward transformation. However, this economic potential is clouded by persistent challenges, including environmental stress, social risks such as forced labor, and a lack of transparency across the supply chain. The global cotton sector has long faced scrutiny over high water consumption, widespread pesticide use, and unethical labor practices. In response, consumers and international regulators are increasingly pressing for a shift to more sustainable production methods. EU Investment and National Reform Tajikistan has begun responding to these challenges. In 2024, it approved the National Strategy for the Development of the Cotton and Textile Industry through 2040, prioritizing modernization, cost reduction, and the expansion of high-value-added production chains. The European Union is playing a central role in this transformation, having allocated a €19.88 million grant to support the sector’s green transition. The funds aim to advance digital technologies, assist small and medium-sized enterprises, and help the industry adapt to climate change impacts, from droughts to rising temperatures. “This is not merely financial aid, it’s an opportunity to build a truly sustainable cotton production system,” said Amirbekov. “Farmers and buyers need to understand the principles of sustainability and how agriculture can become a driver of the green economy.” Ongoing Social and Environmental Challenges Despite signs of progress, Amirbekov noted that significant problems persist. Farmers report that forced labor continues in some areas, with schoolchildren and unrelated government employees involved in cotton harvesting, practices that violate Tajikistan’s international commitments and damage the credibility of its organic cotton sector. Environmental impacts are equally severe. Producing a single T-shirt can consume up to 2,700 liters of water, and nearly a kilogram of pesticides may be used per hectare. Amirbekov stressed the need to adopt certified standards such as the Global Organic Textile Standard (GOTS), to promote sustainable cotton varieties, and to implement precision farming. “Climate change is already reducing yields, droughts, floods, and temperature fluctuations are becoming more common,” he warned. To address this, he advocates for sustainable seed varieties, efficient irrigation, and participation in carbon reduction programs. Amirbekov also criticized the cotton supply chain as fragmented and poorly regulated, undermining trust from international buyers and complicating the enforcement of sustainability standards. He called for the introduction of digital platforms to track supply chains in real time. Social inequality is another concern: women and small-scale farmers often face limited access to markets and lack property rights. Incorporating fair trade practices, supporting cooperatives, and enforcing...

Forced Labor Human rights Cotton

Forced Labor Rampant in Turkmenistan’s 2024 Cotton Harvest, Say Rights Groups

Despite public pledges of reform and cooperation with the International Labor Organization (ILO), Turkmenistan's government continues to enforce widespread forced labor during its annual cotton harvest. This is the core finding of a report released on May 19 by Turkmen.news, the Turkmen Initiative for Human Rights (TIHR), the Progres Foundation, and the Cotton Campaign coalition. Systemic Abuse: The Role of the State The report, titled “State-imposed Forced Labor in the 2024 Harvest and Links to Global Supply Chains,” identifies the Turkmen state as the primary orchestrator of forced labor practices. Observers documented conditions in the country’s key cotton-producing regions, Balkan, Dashoguz, Lebap, and Mary, while withholding personal identifiers to protect sources. Public sector workers, particularly junior staff from schools, healthcare facilities, and utilities, were either compelled to harvest cotton or to finance hired laborers from their own wages. Private entrepreneurs also faced coercive financial pressure. Although child labor remains officially banned, instances were reported, often incentivized by promises of payment. Reforms on Paper, Resistance in Practice While Ashgabat adopted a roadmap in 2024 for eradicating forced labor in coordination with the ILO, human rights defenders report negligible progress. Central to the issue is the state’s monopolistic control over every stage of the cotton supply chain, land allocation, seed distribution, pricing, and collection, enabling local officials to enforce arbitrary quotas and extort farmers. “Boosting productivity or upgrading equipment is futile unless workers are shielded from coercion and can organize to defend their rights,” the report concludes. Women disproportionately bear the burden, as they make up the majority of social sector employees and often lack the financial means to avoid fieldwork by hiring substitutes. Supervised Compliance and Global Implications The report also describes how Turkmen officials obstructed genuine engagement with the ILO. In Mary region, state workers were coached on how to respond to ILO queries, while others were excluded from meetings entirely. International supply chains are not immune. As one of the world’s top 15 cotton producers, Turkmenistan exports textiles primarily to Turkey, Italy, and Pakistan. Turkish-made goods incorporating Turkmen cotton are subsequently sold in the EU, while firms from Germany and Italy supply industrial machinery to Turkmen producers. Recommendations and Global Accountability The report urges the Turkmen government to hold corrupt officials accountable, uphold labor laws, and guarantee fundamental freedoms, including the right to form independent trade unions. International actors are advised to enhance import scrutiny and exclude goods linked to forced labor from supply chains. Foreign diplomats are encouraged to raise the issue during negotiations with Ashgabat and in investment discussions. The ILO, Turkmenistan’s Ombudsman, and international brands are called upon to maintain rigorous oversight and actively prevent labor violations. In a rare move, ILO experts were permitted to monitor the 2024 cotton harvest. Despite limited access, they published critical findings on wage inadequacies, child labor persistence, and repercussions for public employees who resisted field assignments.

Agricultural Produce Law and Order Government Human rights Cotton Legislation

German Firms Urged to Address Human Rights Risks in Uzbek Cotton

German companies, supported by the Federal Ministry for Economic Cooperation and Development and the German textile sector, are increasingly exploring Uzbekistan as a potential market. A report titled Relevant Human Rights Expertise: Risk Assessment for German Companies in the Textile Industry of Uzbekistan evaluates how these firms comply with supply chain laws and fulfill their human rights obligations. The report underscores ongoing challenges in Uzbekistan’s cotton industry, despite recent reforms. Key issues include risks of forced labor, government interference in cotton production, and poor working conditions. Farmers face coercive contracts, insecure land tenure, and restricted union rights. These problems persist even after Uzbekistan privatized its cotton industry and adopted the ‘cluster’ model, which integrates farming, processing, and manufacturing. Umida Niyazova, founder of the Uzbekistan Human Rights Forum, highlighted widespread violations, including illegal land seizures and forced production quotas. She emphasized the lack of protections for cotton workers. Additionally, the report warns that some Uzbek cotton may be entering German markets indirectly through suppliers in Turkey and other countries. The report stresses that effective human rights due diligence is essential for maintaining brand integrity. However, according to author Ben Vanpeperstraete, German companies are failing to adequately address risks associated with Uzbek cotton. Public communications by firms often lack tailored approaches to identifying and mitigating these risks. Forced labor risks in Uzbekistan’s cotton industry remain significant, the report states, despite ongoing reforms. Corporate disclosures frequently omit recognition of forced labor as a sourcing risk. The report calls on businesses to adopt due diligence practices that address Uzbekistan’s restrictions on unionizing and civil society activities. Companies are urged to map and disclose their supply chains to enhance compliance and traceability. Trade between Germany and Uzbekistan surpassed €1 billion in 2023, with German investments in Uzbekistan reaching €800 million by early 2024.

Bilateral Cooperation Economic Cooperation Infrastructure Development Foreign Investment Cotton Agriculture China

Chinese Company Builds Cotton-Textile Cluster in South Kazakhstan

Xinjiang Lihua (Group) Co., Ltd., one of China’s largest companies specializing in the cultivation and deep processing of cotton, has commenced work on a cotton-textile cluster in Kazakhstan’s southern Turkestan region. The project’s progress was reviewed on November 14 during a meeting between Kanat Sharlapaev, Kazakhstan’s Minister of Industry and Construction, and representatives of the company. Located in the Turan Special Economic Zone, the joint venture involves the construction of facilities for PVC pipe manufacturing, drip irrigation systems, two cotton processing plants, a spinning mill, a weaving mill, a dyeing and finishing factory, and a garment factory. The project, with a total cost of 180 billion KZT (over $363 million), is expected to generate more than 4,000 jobs. This year, the initiative saw the installation of a drip irrigation system, cotton cultivation on 1,120 hectares, and the start of construction for the spinning mill. Minister Sharlapaev underscored the project’s significance for the development of Kazakhstan’s light industry, pledging comprehensive government support to ensure its success.

Agriculture Legislation Cotton Human rights ILO

Teachers in Turkmenistan Demand Money from Pupils to Hire Cotton Pickers

Following Turkmen President Serdar Berdymukhamedov's recent directive to speed up the cotton-picking campaign, the Chronicles of Turkmenistan has reported that schools in Lebap province have started collecting money from students to hire workers for the task. The established daily norm for each class is 200-300 kilograms of cotton, depending on the number of students. Based on the requirements, schools must hire 5-6 pickers, each of whom must pick at least 50 kg of cotton daily. In addition to schools, health facilities have also been obliged to provide workers under the cotton-picking campaign. However, despite the ban on collecting money from their subordinates, teachers and medical workers have to look for laborers among the local population, offering payment of 35-40 TMT per day ($10-12). According to a roadmap signed in June by Turkmenistan and the ILO, forced labor in cotton harvesting, including the mobilization of children and government employees, should be eliminated. Nevertheless, mobilizing workers and schoolchildren to fulfil plans for the cotton harvesting campaign continues. In addition, students and civil servants, including teachers, are systematically forced to work in the cotton fields under threat of dismissal from their jobs or expulsion from educational institutions.