Stimulus for sustainable cotton production in Tajikistan
- Sustainability
ABN AMRO offers cotton farmers in Tajikistan loans through a partnership with ECOM to produce sustainable cotton and so increase local yields. ECOM is an international company trading in and processing coffee, cotton and cocoa. Loans have been granted through ECOM to local farmers since April this year.
ABN AMRO has a significant global position in trade financing. The ECT (Energy, Commodities and Transportation) division is specialised in granting and managing these loans. Head of ECT Harris Antoniou on financing for ECOM: “This is a milestone for the future of cotton production in Tajikistan and it reflects our commitment to sustainable banking in theagricultural sector.”
Central Asia is the world’s third largest cotton exporting region after the US and India, but yields in Tajikistan are relatively low due to inefficient production methods and a shortage ofhigh-quality seeds and fertilisers. ECOM started building long-term relationships with small local farmers in Tajikistan in 2008. Through the Farmer Advance programme, local farmers were able to get financing to buy seeds, fertilisers, fuel and access to agricultural services. ABN AMRO partnered with ECOM as part of the Agricultural Impact Banking Initiative. This ABN AMRO initiative gives small farmers access to funding for sustainable business operations, giving a boost to the entire commodity value chain.