After de-monopolization of the cotton market, the cotton farms are free to dispose of their harvest: they either sell the produce in the domestic market or export it, which is quite a complicated procedure. The Republican Cotton Exchange can help the farms to export cotton fiber or other cotton products.
Exporters of cotton have to pass a number of instances: Ministry of Finance, Ministry of Economy and Trade, Customs Committee, tax Committee, and should obtain payment orders from their bank. Because of this procedure, the cotton growing farms usually do not export cotton but sell it to companies, which take care of the documentation for export. There are several dozens of such firms in Tajikistan, with 7-8 largest - representations of foreign companies.
The largest cotton dealers make futures contracts with cotton growing farms. By these contracts, the companies supply the fuel, tractors, pesticides, fertilizers, and cash f or labor. The largest investors and therefore the buyers, actively engaged with Tajik cotton producers are the Swiss firm Paul Reinhardt and the department of trade of Swiss bank "Credit Swiss First Boston". Tajik cotton is also exported to Hungary, Austria, Italy, Poland, Cyprus, and USA.
Cereals. While a part of the Soviet Union,
Tajikistan had not experienced shortage of cereals, due to the centralized distribution. However, after gaining the independence the republic, which did not have its own production of wheat, turned out to be in difficult situation. The prices for wheat and flour went up rapidly. In this situation, many private, collective and state farms began growing wheat and rye instead of cotton, which led to reduction in cotton plantations. The drought of 2000 destroyed crops on more than 70,000 hectares in the country.
Last year, the 228,300 hectares of wheat and beans fields (without corn) produced 261,800 tons of grains, which is 25,200 tons more than previous year. The annual consumption of wheat in the country is 600,000. Apart from domestic production of cereals, Tajikistan imports large amount of wheat and flour. The major importers of wheat are the state holding company "Galla" and a number of intermediary firms, which supply 380,000-400,000 tons of cereals every year. Wheat and flour arrive in Tajikistan from Kazakhstan, Russia, Ukraine Kyrghizstan, and as humanitarian aid o European Union. It is planned to increase production of cereals in the country t 1,000,000 tons by year 2005.