5
Image: Uzbekistan’s Minister of Agriculture Jamshid
Khodjaev with the president of Indorama Group,
Sri Prakash Lohia, in Tashkent, 4 October 2019
Source: Ozodlik
2.4.5 Case study five: Akaltin district
On 8 August 2018, the Cabinet of Ministers issued a decree granting 50,000
hectares of land for cotton production to Indorama Agro LLC, in return for
investments by the international textile firm of $340 million.174 The decree also
instructs hokimiyats in the Kashkadarya and Syrdarya regions to acquire the
land for the proposed project.
According to the EBRD’s impact assessment report on the project: ‘Before
the Project, 2,897 cotton farms operated in the Project footprint. In total 1,155
cotton farms were approached by the Government in the land acquisition
process and 1,068 farms agreed to terminate their LLAs [Land Lease
Agreements] while 87 farms decided to continue their own operation.’175
The assessment continues: ‘Phase I farmers who agreed to terminate their
respective LLAs (1,068 farmers in total) were offered to join FE “Indorama
Agro” LLC and work full time based on long-term labour contracts.
Approximately 45% of the farmers (or 481 people) who terminated their LLAs
agreed to join FE “Indorama Agro” LLC and are now working in the Company.’
The report notes: ‘The Government representatives (namely the Hokimiyat)
provided no cash compensation for the transfer of land of the farms from LLAs
to the Company, because they considered that provision of land was willingly
done (namely that it is considered “voluntary” via the legal framework).’
According to impacted farmers, however, the land was transferred by
hokimiyats to the company without regard for the long-term leases that
farmers had and without meaningful prior consultations or compensation from
the state for the unilateral termination of their land leases. Farmers state that
they were forced by officials to sign “voluntary” statements to terminate their
land leases. In many cases, farmers did not have copies of their land leases,
which were held by hokimiyats.
Uzbek Forum for Human Rights has conducted monitoring of the Indorama
project since 2019 and interviewed dozens of farmers and project-affected
persons in Akaltin, Sardoba, Nishon and Kasbi districts where Indorama Agro
operates. Because of repeated incidents of retaliations against Indorama
farmworkers and other stakeholders who speak out or speak to international
organisations, all names of farmers and their farms have been withheld in the
interests of their safety.
54 A False Sense of Legality