Kyrgyzstan's vegetable market is struggling, with onion exporters facing significant financial losses. Economist Iskender Sharsheev explains why tons of produce rot before reaching stores and identifies systemic issues affecting the industry. He notes that during certain seasons, the oversupply of crops like cabbage, potatoes and tomatoes outpaces market demand. Significant portions of the harvest are lost to disease and spoilage. In contrast, fruits like cherries and strawberries perform well in exports, and apples are in high demand.
A key problem is the weak export infrastructure. Despite having logistical centres, farmers are reluctant to use them, viewing them as profit-seeking intermediaries. Furthermore, the sector for advanced processing of vegetables and fruits is underdeveloped, with few entrepreneurs engaging in drying, preserving, freezing, or canning. Effective processing requires production capabilities, marketing, infrastructure, and international connections, which are currently lacking.
Additionally, the influx of cheaper imported fruits and vegetables from countries like China, Uzbekistan, and Turkey overwhelms the local market. Kyrgyzstan lacks substantial agricultural subsidies, forcing local farmers to increase prices gradually. The government attempts to control prices for essential goods, but this measure is limited. In response to these challenges, Minister Bakytt Torobaev met with onion exporters and local producers to discuss potential solutions. The entrepreneurs appealed for assistance, citing the low onion prices and high cultivation and transportation costs that make their operations unprofitable.
Source: vesti.kg