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Value Chains research report Tajikistan final - Microfinance Centre

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3. Entrepreneurs are not interested in running the storage business.<br />

Higher production of onions also helped meet the demand within the country in spring<br />

period, when <strong>Tajikistan</strong> was importing onions from neighboring states. The people<br />

started investing in storage facilities to obtain profits in the local market. This trend had<br />

a positive impact on import reduction. While the import of onions was increasing since<br />

2006 to 2009 by over 300% annually, reaching the volume of 26,000 tons, in 2010 only<br />

410 tons of onions were imported.<br />

Scheme 2. <strong>Value</strong> chain for onion.<br />

Markets<br />

Domestic<br />

Export wholesale markets<br />

Exporters<br />

Exporters<br />

Wholesaler/<br />

warehouse<br />

keepers<br />

Warehouse keeper<br />

Wholesaler /<br />

traders<br />

Wholesalers, include ware-house keepers<br />

Producers<br />

Population, 59 % of total production Dekhkan Farms, 31% of all production<br />

Collective Farms, 10% of all production<br />

Transportation of onions<br />

Onions are exported from <strong>Tajikistan</strong> mostly via railroad, from Proletarsk or Nau stations<br />

in Sughd Region. Main export destinations are Kazakhstan and Russia (Chelyabinsk,<br />

Orenburg, Ufa, etc.). Due to political tensions with neighboring Uzbekistan, exporters<br />

cannot send onions from other stations in the South of the country, such as Jaloliddin<br />

Rumi or Shartuz. When crossing the border, Uzbek customs unofficially do everything to<br />

obstruct and prevent passing of the goods. As a result, exporters have to rent trucks<br />

and take the onions to the North of the country (Proletarsk or Nau) and then move the<br />

product onto trains. This causes unnecessary expenses.<br />

37

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