Value Chains research report Tajikistan final - Microfinance Centre

Lemon pricing is highly seasonal. The price is lowest during harvest in November,
raises little through January and reaches a maximum during summer months. The
prices are highly dependent on supply and demand.
As it shown on the diagram 3 prices for lemons are highest in Khujand and the lowest in
Kurgan-Tube. Due to lower production in the north of Tajikistan most lemons are
imported from the south. The higher prices in the north are largely due to transportation
expenses. In Kurgan-tube lemons are sold mostly by households and are grown
around the city (Bokhtar district). The same differences can be observed in retail prices
of Dushanbe and Khujand markets during the spring. To make the prices more stable
lemon greenhouses should be built around the city center.
Lemons could not take a niche in major markets because of their low volume and
prices. The Mediterranean and Latin American lemons are the most saleable in
traditional markets. For example, the amount of Turkish lemons increased in November
2006, decreasing of prices to 17.5-18 rubles for a kg in Moscow and St. Petersburg. But
in Tajikistan the farm gate price of lemon was more than $1 or 25 rubles for a kg.
According “Citrus fruit, fresh and processed, annual statistics” the world wholesale price
for good quality lemon in Europe equal 0,90 Euro, in USA 1,6 USD and in China 0,80
USD include shipment to the main ports.
Cost of lemons
Obviously, the main barrier to export is the high cost of lemons sold. According to data
obtained during the interviews with representatives of PO “Gamkhori”, the cost of
producing lemons (excluding depreciation of the greenhouse and labor invested) is 1.40
Somoni per kilogram in Bokhtar district and 1.80 Somoni in Kumsangir. The price is not
based on market factors but rather on the fact that the goods are not perishable and are
produced in small batches, therefore there is a high chance of selling the batch to the
next buyer.
Current price kept high since most of produced lemon consumed by local
population which ready to pay that price. According the statistic the production too low,
and per capita became less than 200 gram lemon per year.
Lemon Packaging and storage
Lemons are packaged depending on the estimated storage time, sales market
and the time needed for transportation. If the lemons are to be immediately sold at the
markets in Dushanbe, they are picked rather carelessly, then stored in bulk, without
lining and ranging, into PET bags or banana boxes17. If the lemons are intended for
delivery to Khujand or for storage, they are carefully packed in wooden crates, lined with
sawdust, PET film and paper. Usually fruit packed in cardboard boxes are delivered by
cars, while wooden crates (up to 30 kg per crate) travel in big trucks.
17 According to merchants, banana crates can be reused three times.
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