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!