Sys­temic Re­forms

Uzbekistan Today (English) - - FRONT PAGE -

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.

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