In Uzbekistan, a new scheme for the sale of cotton to textile enterprises will be introduced next year as an experiment.
Now domestic enterprises of the textile industry will purchase «white gold» directly from farmers, bypassing other intermediaries, including various state structures.
Earlier, they were forced to purchase it at export prices from the monopoly supplier Uzpakhtasanoatexport. This procedure reduced the profitability of production and the competitiveness of Uzbek textile products.
As part of the experiment initiated by President Shavkat Mirziyoyev, textile enterprises will finance the main costs of farming to grow raw cotton by advancing at least 60% of the cost of the contract. All raw cotton delivered should be used only for further deep processing and production of finished competitive products.
The price for raw cotton purchased by enterprises will be established on a contractual basis, based on an analysis of actual costs and profitability of farms. At the same time, it should not be lower than the cost of cotton purchased for state needs. Therefore, the head of state instructed the government to establish government procurement prices for the «white gold» harvest of 2018 until January 15 next year.
The remaining by-products - cotton seeds, lint (cotton fiber) and ulyuk (waste of cotton fiber) textile enterprises will be able to sell to all interested parties through exchange trades.
In addition, the President approved the decision to liquidate the Uzbekyengilsanoat joint-stock company. This decision was made in connection with the fact that the industry management system developed over the past years does not meet the current trends in the development of the textile industry and is incapable of supporting producers.
Now, for example, Uzbekyengilsanoat includes 436 enterprises, which makes up only 6% of their total number. The activities of this society basically come down to collecting statistics, holding various meetings, organizing exhibitions. Its organizational form also does not correspond to the legal position of the JSC.
Now, on the basis of the liquidated JSC, the Association of Enterprises of the Textile and Clothing and Knitted Industries, Uztekstilprom, will be established. She will be responsible for working out proposals for eliminating systemic problems, introducing marketing innovations, as well as identifying prospects and priority directions for the industry development, taking into account current trends.
In the structure of the new organization will also appear for the first time an advisory body - the Council of the enterprises of the textile and apparel and knitted industries. It is interesting that all enterprises included in the association will be obliged to export products with the unified marking Uztextile.
One of the main tasks of the association is the transfer of the Uzbek textile industry to cluster development. This model implies the organization of a single production cycle, which includes the cultivation of raw cotton, primary processing, further processing at cotton ginning enterprises and the production of final textile products with high added value.
President Mirziyoyev created a special Working Commission tasked with developing a draft Concept of Development for the medium-term perspective of cotton and textile clusters, taking into account the experience of existing similar facilities in the Bukhara and Navoi regions.
The President also provided members of the new association with a number of privileges and preferences. Among them - the release until January 1, 2021, from payment of customs fees for imported cotton, artificial and synthetic fiber, wool, raw materials and other materials necessary for the production of textile products.