Closing speech by Ilham Aliyev at the meeting on results of cotton-growing season and measures to be taken in 2020

So I want to say again that I am very pleased with the results of this year. Most importantly, we are seeing that the goals correctly established in cotton growing are being met. Cotton growing has again become a profitable and labor-intensive sector that has a positive impact on the country's economy, including the stability of the macroeconomic situation, the strengthening and stability of the manat.

It is no secret that the main sector, which brings us currency, is the oil and gas sector. Of course, the development of this sector is always in the spotlight. Great success has been achieved. However, our main goal is to diversify the economy through the non-oil industry and agriculture. There has been a significant increase in both the non-oil industry and agriculture this year. The non-oil industry grew by more than 14 and agriculture by more than 7 percent. I am sure that these trends will be continued, and we will thus develop agriculture in accordance with the most modern standards.

I want to say again that we must provide more space to progressive technologies in matters related to cotton growing. Pilot projects were implemented and the yield is very high – about 60 quintals. Therefore, I believe that we should increase the coverage of pilot projects next year, and the Ministry of Agriculture should submit proposals on this issue.

At the same time, we did not pay sufficient attention to one important issue today. It is the issue of seed production. We must put into operation a factory for the production of fiber-free cotton seeds. There is such a project now, and I believe that work should be started next year. In any case, the construction of the factory will last a year, perhaps a year and a half. We must provide ourselves with these quality seeds.

This year, procurement companies quickly paid farmers their due. I am sure that this will be the case next year too. Everyone receives wages on a daily basis and some several times a week. Calculations must be carried out accurately and without delay.

More low-interest loans should be allocated to the cotton growing sector. The Ministry of Economy is being instructed to analyze these issues. Next year, low-interest loans amounting to about 200 million manats are envisaged. Sufficient funds should be allocated to cotton growing.

We need to once again review the activities of our cotton processing plants, because many of them were built in Soviet times. Their efficiency is low and the quality is not up to standard. Therefore, the production capacity of the plants must be calculated accurately because the capacities declared today do not reflect reality. The capacity of the ginneries should be consistent with the increasing volume of cotton, as I am sure we will increase productivity. I don’t want to cite figures now, but in any case, it is expected that more than 30 quintals of cotton will be harvested per hectare next year. In this case, more than 300,000 tons of cotton will be picked. But can our ginneries cope with this volume? This is first. Secondly, the factories need to be modernized. If necessary, the state can provide financial support. A new ginnery was commissioned in Ujar this year. According to the information available to me, it meets high standards, and it was built by the private sector. This is a very positive fact. I believe that businesses should pay attention to this area. In general, they need to determine whether we need new ginneries at all. If we do, to what extent, so that we could calculate the support to be provided by the state in advance. New spinning mills should be created because so far only 40 percent of the harvested cotton is being processed. This is a good indicator. However, we should try to process 100 percent of cotton fiber, as this would create a value chain and jobs. Industrial production will also increase. Therefore, I am addressing the private sector again and urging him to pay attention to this issue. We have enough cotton. Therefore, the construction of spinning mills will turn into a profitable business. If necessary, the state can support these projects with low-interest loans. However, the construction of spinning mills is not the ultimate goal either. The ultimate goal is to produce finished products. With this in mind, it is necessary to build new textile and knitting factories, create factories for the production of feed and oils. All this will strengthen our economy and create thousands of more jobs.

We must meet domestic needs with domestic resources. We currently harvest cotton, and a significant portion of it, 60 percent, is exported as cotton fiber and 40 percent in the form of yarn. The products made from this yarn are subsequently imported by us, and it takes millions, tens of millions. Therefore, domestic production in this area should develop. A chain-type procurement and production complex should be created. The main role here will be played by the partnership between the state and the private sector.

To ensure coordinated implementation of this work as a whole, the Presidential Administration, the Cabinet of Ministers, the Ministry of Economy, the Ministry of Agriculture, local executive bodies and procurement companies, as well as other companies that are not present here today, should draw up a joint action plan. It is necessary to draw up and implement a very broad and detailed roadmap for 2020. Under such circumstances, cotton growing in Azerbaijan will develop at a faster pace and benefit both people working in this sector and the state. Thank you!