Cotton seeds market in Azerbaijan

Earlier Report Observations

The cotton seeds market in Azerbaijan began a period of expansion from 2018, underpinned by the launch of the State Program for Cotton Development for 2017-2022. This initiative, targeting 500 thousand tons of raw cotton by 2022, led to the expansion of cultivated areas and increased state support for farmers. The import of high-quality seeds from Turkey, Israel, and Uzbekistan, along with the recommendation of specific productive varieties, provided the foundation for growth. Consequently, production rose from 130 thousand tons in 2018 to 162 thousand tons in 2020, and the market size increased from 130 thousand tons to 151.3 thousand tons.

Market growth accelerated in 2021, with production reaching 185 thousand tons, supported by rising export prices for cotton yarn which improved farmer incomes. However, a sharp reversal occurred in 2022. Despite a doubling of the procurement price for raw cotton, production fell to 158 thousand tons due to a combination of high land lease and irrigation costs for farmers and reported adverse climatic conditions that affected yields. This led to a significant contraction in domestic market volume to 121.2 thousand tons, amplified by a concurrent surge in exports.

A recovery followed in 2023 as production rebounded to 177 thousand tons and the market size grew to 160.6 thousand tons. While imports of seeds from Turkey decreased, the overall supply of seeds continued from Turkey, Israel, and Uzbekistan, supporting the sector's return to growth after the previous year's production challenges.

Production cotton seeds in Azerbaijan

In kind, 2018-2021, K t

From 2018 to 2021, Azerbaijan ranked 21st globally in cotton seed production.

Top producers of cotton seeds, 2018-2021

World map of production of cotton seeds, 2018-2021

Cotton seed production in Azerbaijan grew for the second year in a row. In 2021, the country produced 185.0 K t, marking a significant year-on-year increase of 14.2%. Over the 2018-2021 period, production rose by 42.3%, with a compound annual growth rate of 12.5%. The lowest production level was in 2019 at 129.0 K t, which saw a slight decline of 0.8%. In contrast, 2020 recorded the largest increase at 25.6%.

Annual dynamics of production in Azerbaijan in kind, 2018-2021, K t

Exports cotton seeds from Azerbaijan

Exports in kind, t

The market displayed volatility during the observed period. Exports reached their lowest point in 2019 at 1 166 t, with a decline of 45.9% that year. They then surged by 1 029.9% in 2020, peaking in 2021 at 27 832 t, which was a 111.3% increase from 2020. Overall, exports varied by 24-fold between 2019 and 2021.

Annual dynamics of product's exports from Azerbaijan in kind, 2018-2021, t

Between 2018 and 2021, Turkey and Kazakhstan were the primary buyers of cotton seeds from Azerbaijan, together accounting for 86.7% of total exports in volume. Other destinations each held relatively small shares.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Azerbaijan in kind, 2018-2021

Exports in value, K $ US

The market showed an unstable trend throughout the timeframe. Exports in value terms hit their lowest point in 2019 at 119 K $ US, with a decline of 45.0% that year. They then jumped by 2 016.7% in 2020, reaching a peak in 2021 at 4 703 K $ US, which was an 86.4% increase from the previous year. Overall, exports varied by 39 times between 2019 and 2021.

Annual dynamics of product's exports from Azerbaijan in value, 2018-2021, K $ US

From 2018 to 2021, Turkey dominated Azerbaijan's export partner structure in value terms, holding a 74.9% share of total flows. Other markets had comparatively modest shares.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Azerbaijan in value, 2018-2021

Imports cotton seeds to Azerbaijan

Imports in kind, t

In 2021, Azerbaijan's cotton seed import volume was 2 268 t, showing a modest year-on-year drop of 8.5%. Over the 2018-2021 period, imports increased by 3.9%, equivalent to an annualized rate of 1.3%. The lowest import level was in 2019 at 1 886 t, with a decline of 13.6% that year. Imports then rose by 31.3% in 2020, reaching a peak of 2 477 t.

Annual dynamics of product's imports to Azerbaijan in kind, 2018-2021, t

Between 2018 and 2021, Turkey was by far the main source for cotton seed imports to Azerbaijan, accounting for 98.2% of total volume.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Azerbaijan in kind, 2018-2021

Imports in value, K $ US

In 2021, Azerbaijan imported approximately 6 630 K $ US worth of cotton seeds, reflecting a controlled reduction of 6.2% compared to the previous year. Over the 2018-2021 period, imports increased by 3.8%, equating to an annualized rate of 1.3%. The lowest value was in 2019 at 5 519 K $ US, with a decline of 13.6% that year. Imports then grew by 28.0% in 2020, reaching a peak of 7 068 K $ US.

Annual dynamics of product's imports to Azerbaijan in value, 2018-2021, K $ US

From 2018 to 2021, Turkey remained the overwhelmingly dominant supplier of cotton seeds to Azerbaijan in value terms, accounting for 99.0% of total imports.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Azerbaijan in value, 2018-2021