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FROM COTTON TO DRESS

Azerbaijan's textile industry needs an upgrade for support for broad prospects for development of cotton farming

Author:

15.05.2016

One of the most important areas of the development of the non-oil sector is agriculture, which will, first of all, significantly reduce dependence on imports and also has a great export potential.

Although a lot of work has been done in the field of food industry over the past few years and most foods in stores are domestically made, local manufacturers in the textile industry do not particularly indulge consumers in their output. This is despite the fact that all basic things that are needed for this sector to develop in this country are available. Therefore, Azerbaijan's textile industry needs an upgrade for support for broad prospects for development of cotton farming and sericulture.

Azerbaijani businesses have a role model in their fight against competitors. Back in the early 20th century, Haci Zeynalabdin Tagiyev built Baku's famous cotton factory, embarking on a fierce competition with 28 major manufacturers headed by "the king of Russian textile", Savva Morozov.

Tagiyev's factory came to be one of Russia's plants that were equipped with modern machinery from Europe, presumably composed of 2,500 different mechanisms. The factory bought weaving machines in England. A total of R1.7m rubles in gold were spent on the factory that had a capacity of 30m arshins (1 arshin is 71.12 cm) of calico a year.

Tagiyev's textile factory in Baku was the twenty-ninth in Russia but the only one in the Caucasus. It was not easy for Tagiyev to organize production because Russian manufacturers used their connections to impede the production of chintz and other fabrics at this factory. However, a short while later, calico made at Tagiyev's factory not only actively conquered the markets of the Caucasus countries but also took a leading place in many Muslim countries. It was bought for pilgrimage to holy places - Mecca, Karbala, Khorasan.

Tagiyev's merit is that he always tackled issues in a comprehensive manner, regardless of how much work and money had to be invested. Before building and equipping the factory with modern machinery, Tagiyev bought plots of land and expanded cotton crops from 40 to 250 dessiatines (1 dessiatine is 1.09 ha), thereby increasing yield several times over!

Azerbaijan's leadership has identified horizons for the development of cotton farming for this year. At a government session held to discuss the results of socio-economic development in the first quarter of 2016, President Ilham Aliyev issued concrete instructions towards the development of cotton farming.

"Cotton is a product that does not need to search for a market. There was a time when owing to the work and efforts of great leader Heydar Aliyev, cotton production reached 1m t in Azerbaijan. In 1969, when he came to power, approximately - I cannot remember well now - 100,000-200,000 t were produced. Last year, only 35,000 t of cotton were harvested in Azerbaijan. There is a difference between one million and 35,000, isn't there?! Private companies are unable to do it on their own. The government plays the main role in the development of cotton farming, local executive bodies play the second role, and then follow private companies. We must resume cotton farming. Last year, 18,000 hectares were sown. For this year, I have set a target to sow 50,000 hectares, and sowing will probably start very soon. Last year, we were able to harvest 35,000 t of cotton, but this year, if 50,000 hectares are sown and the lowest yield is 20 quintals, then 100,000 t of cotton will be harvested, which is three times more than last year. But there now exist new technologies, including irrigation ones, and if we increase our yield, we will be able to achieve even better results. In the 1970s-80s, cotton was sown in 200,000 to 250,000 hectares, but last year it was 18,000. Therefore, we must find a way to increase productivity and put into sown areas into work, ensure normal irrigation and seed supply, and this year we expect 100,000 [t of] cotton. But all necessary measures must be taken in the course of this year, before next year's sowing, so that in 2017 - I do not want to name a number now - Azerbaijan's cotton harvest is several times greater," President Aliyev said.

With this focus on the development of cotton farming, we could actually think about not simply exporting raw cotton but also about a full production cycle that would include both production of fabrics and of end output of the textile industry.

Therefore, Azerbaijani businesses should restore textile infrastructure in Baku, Ganca, Mingacavir, Saki and Sumqayit. First of all, Azerbaijani businesses should give a fight to textile output from Turkey, China, India etc that has filled the Azerbaijani market.

Then, we can start conquering the markets of Persian Gulf countries, Russia and other countries. We should not forget that Azerbaijani output, which is made from domestic raw materials, as well as favourable transport logistics should allow our cotton output to be competitive in the foreign market.

On the path of the development of the textile industry, significant responsibility falls on the shoulders of the government. The government needs to create a competitive environment for a rapid development of this industry. The Azerbaijani government is willing to support businesses with concessional funding.

From this point of view, of particular importance are loans issued by the government and work done by the Economy Ministry's National Fund for Entrepreneurship Support. The foundation has issued more than 28.4m manats in soft loans towards the establishment of seven textile factories that cost a total of 60m manats and their provision with modern equipment from Germany, Belgium, Switzerland, Austria, Italy, Spain, Japan and Turkey. The start of the operation of these plants has helped supply consumers with different kinds of high-quality textile and knitted output according to their needs.

Their output, manufactured from 100-per-cent cotton, does not contain any chemical additives, is safe for human health and is considered environmentally friendly and meeting all international quality standards. That is why their output such as military uniforms and special uniforms, bathrobes and towels, bed linen, blankets and pillows, special sets for hotels and sports complexes, and shirts and suits stand a chance of winning the market.

We should note, however, that to achieve the goals set and expand cotton output we need to take one more step, which is to start to make trademark output.

To create a famous brand product, there are two options: to agree to organize the production of output under already well-known brands or develop one's own brand.

Many countries have chosen option one. In many developed countries, when buying items from world-famous brands, you can see labels that say that they were made in India, Pakistan, China and even Vietnam.

Option two involves a thorny path and requires large spending. But output under the brand "Made in Azerbaijan", with emblems of national attributes on clothes, is an opportunity to once again declare loudly not only the successes of our national economy but also those of this country.

The 1st European Games, a stage of Formula One auto racing, and other major sporting events held in Baku are necessary so that foreigners get to know Azerbaijan better and tourists visit. But it is time to also present Baku as a fashion hub for the East. There is a lot of work to be done in this regard, and Azerbaijani fashion designers are yet to find their place in the market in the world of fashion and production of clothing.



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