A year ago, Tajikistan President Emomali Rahmon ordered to make loans more accessible to farmers. A year has passed. What has changed?
Last May, Tajik President Emomali Rahmon instructed the National Bank and credit institutions to support farmers, dekhkan farms and agricultural enterprises – to make loans more accessible, preferential and long-term. Formally, there are agricultural loans on the market, but farmers themselves say: with interest rates of 24–28% per annum, borrowing money is still risky.
As the head of state noted then, in January–April 2025, credit organizations issued 9.1 billion somoni to economic sectors and the population – 37% more than a year earlier. But agriculture accounted for only 14% of loans issued, industry – 11%, while almost half – 49% – went to consumer loans.
The President instructed the National Bank and other credit organizations to take practical measures to ensure that small and medium-sized enterprises, especially in industry and agriculture, have access to preferential and long-term loans.
“It’s better slowly, but without debt”
A farmer from one of the districts of republican subordination says that after the president’s instructions he was interested in the terms of the loans, but did not dare to take money from the bank.
He has a small farm: vegetables, a small garden, several heads of livestock. Money is needed almost every season – for seeds, fertilizers, fuel, hiring workers, repairing equipment. But a loan, he said, is too much of a risk for such an economy.
“I understand that it is difficult to develop without money. But if you take out a loan, you need to be sure that the harvest will be good, the price will not fall, there will be water, and the equipment will not fail. And every season with us is a risk. It’s better to do it slowly, but without debt,” he says.
According to the farmer, in agriculture it is impossible to accurately calculate income in advance. The harvest may be damaged by the weather, there may not be enough water, the price on the market may drop sharply just when the goods need to be sold.
“The bank will wait for its payment every month. But the land doesn’t give money every month,” he says.
“Choryakkors of the XXI century”
The second farmer we spoke with had already taken out loans; he was sure that the rates in Tajikistan were too high.
According to the published conditions of banks and microfinance organizations, agricultural loans in somoni today are mainly issued at approximately 21–28% per annum. For some banks, rates start from 24–25%, for some products they reach 28%.
“If the loan is at 25%, this means that a quarter must be given to the bank. In the old days there were choryakkors (sharecroppers) – peasants who worked for the bais and gave away part of the harvest. Of course, now the system is different, but for a farmer 25% is a lot,” he says.
With a loan of 1 million somoni at 24% per annum for 5 years, the monthly payment with an annuity schedule can be about 28.8 thousand somoni. Over the entire period, the farmer will pay approximately 1.73 million somoni, of which more than 700 thousand somoni are overpayments on interest.
With a loan at 25% per annum for 3 years, the total amount of payments will be about 1.43 million somoni, and the overpayment will be approximately 431 thousand somoni. This does not take into account possible commissions, insurance and other expenses.
For large farms, such amounts may be part of the business plan. For small dehkan farms, this is a risk that they are often not ready to take.
Who still takes loans?
There is a third category of farmers – those who, despite high rates, still take out loans. They believe that in some areas borrowed money can pay off.
One of the farmers says that a loan can be useful if the money is used not just “for the season,” but for something that will generate income for several years: a greenhouse, a refrigerator, drip irrigation, equipment, a livestock complex, processing or storage of products.
“If you take out a loan just for expenses, you may not get it. But if you invest in a greenhouse or equipment that will work for several years, then it makes sense to take the risk,” he says.
According to him, an expensive loan can only be justified where the farmer controls sales and can sell products not immediately after harvest, but at a more profitable period. For example, if there is a refrigerator, agreements with customers or the possibility of recycling.
The debate about “preferential” loans has been going on for a long time
The problem of the high cost of loans for farmers has been raised for several years. Back in 2021, when Amonatbank launched the “Kishovarz-2021” campaign and offered farmers loans from 3 to 500 thousand somoni for up to 36 months at 18% per annum in national currency and 8% in foreign currency, economist Khojimuhamad Umarov criticized such conditions.
He believed that even these loans could not be called truly accessible to agriculture.
“The interest on loans for farmers in Tajikistan should not exceed 10%,” Umarov said.
In his opinion, at a higher rate, the loan does not give the expected effect for farmers, because a significant part of the income is spent on servicing the debt. Today, when many agricultural loans in somoni are already offered at 21–28% per annumthis criticism sounds even more relevant.
Money goes to consumption, not to fields
The president also pointed this out at a meeting in May 2025. Despite the growth in the total volume of lending, the structure of loans issued did not correspond to the priorities of economic development.
As we noted above, in January–April 2025, which the head of state spoke about, of the 9.1 billion loans allocated to agriculture, only 14%.
And, judging by open aggregated data, there has been no turning point since then. The weighted average rate on loans in national currency increased from 22.1% in 2024 to 22.6% in 2025, and in January–April 2026 reached 24.11%.
It turns out that overall more money was invested in the economy, but agriculture did not receive a noticeably larger share of credit resources.
What do banks offer?
Formally, there are agrocredit products on the market. They are offered by both banks and microfinance organizations.
Amonatbank indicates loans for agriculture in somoni from approximately 21% per annum depending on the term. Bank “Eskhata” offers agricultural loans for crop production, livestock farming and other areas of agriculture – up to 4 million somoni, for a period of up to 60 months, with a rate of 24% per annum. Agricultural equipment and future harvests can be accepted as collateral.
Bank “Arvand” offers loans for growing crops and livestock at 25% in somoni, “Spitamen Bank” – agricultural loan at 28% in somoni, “Imon International” – product “Farovon” for farms and dehkan farms at 26% per annum.
There is also Islamic financing: for example, Tavhidbank offers the “Murabaha for Agriculture” product with fixed markup of 10%, but this is not a classic interest-bearing loan and operates on its own terms.
That is, there is a choice on the market. But the main question is not only the availability of the product, but its cost, term, collateral and the farmer’s real ability to service the debt.
“Agriculture is not a store where there is revenue every day”
Farmers often say that banks value them in the same way as trade or services. But in agriculture, money works differently.
“Agriculture is not a store where there is revenue every day. Today you invested money, and you will receive results in a few months. And only if everything goes well,” says the farmer.
A merchant can buy a product, sell it and return part of the loan in just a few weeks. The farmer invests money in land, seeds, fertilizers, water, equipment and workers. However, it depends on the weather, plant diseases, pests, market prices and access to water.
For large farms, such expenses may be part of the business plan. For small dehkan farms, this is a risk that they are often not ready to take.
If the loan is short and expensive, the farmer is forced to either risk the entire harvest or abandon development. Therefore, farmers believe that agriculture needs different conditions: longer terms, a grace period before harvest, lower rates, clear collateral requirements and separate programs for those who invest in storage, processing and water-saving technologies.
What’s the result?
Banks and microfinance organizations have special products for agriculture, and the amounts for individual programs reach millions of somoni. But for many farmers, such loans remain expensive and risky.
Some prefer to develop slowly, but without debt. Others believe that a rate of 24–28% actually “eats” a significant part of the future harvest. Still others still take out loans, but only if they see that the investment will have a long-term effect.
