Azerbaijan Plans Cotton Insurance Scheme To Reduce Market Risks
Azerbaijan is planning to introduce insurance mechanisms for the cotton sector to protect farmers and cotton producers from price volatility in international markets, as part of broader efforts to strengthen the industry’s long-term sustainability.
The announcement was made by Zeynal Naghdaliyev, Assistant to the President of Azerbaijan and Head of the Department for Territorial and Organizational Issues of the Presidential Administration, during a regional consultation on cotton sector development held in Sabirabad.
According to the government, the proposed insurance framework will complement existing product subsidy programmes and help stabilise incomes for both cotton growers and processing companies by reducing risks associated with fluctuating global cotton prices.
Naghdaliyev said Azerbaijan’s cotton industry has entered a phase of sustainable and independent development, with 15 specialised cotton companies currently operating across the country. These companies independently determine cultivation areas, enter into direct agreements with farmers and manage production activities without external intervention.
The government also confirmed its commitment to continuing product subsidies for the cotton sector as part of its strategy to support production, improve farm incomes and enhance the competitiveness of Azerbaijan’s cotton industry.
The regional consultation focused on measures to strengthen cotton cultivation and support the sector’s long-term development through policy reforms and industry collaboration.
