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Uzbekistan reforms its cotton, textile industry

Along with this decree, measures to support textile industry enterprises, including the provision of privileges for customs payments are envisaged. For the first time, an advisory body, the Council of the enterprises of the textile and apparel and knitted industries, will appear in the structure of organization. It is interesting that all enterprises included in the association will be obliged to export products with the unified marking Uztextile. The president also provided members of the Uztekstilprom Association with a number of privileges and preferences. Among them are exemption 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 until January 1, 2021. Currently, Uzbekistan is the world’s sixth-largest cotton producer among 90 cotton-growing countries. The country exports cotton mainly to China, Bangladesh, Korea and Russia.  Uzbekistan is expected to achieve full processing of cotton fiber in 2021. By 2020, the capacity of local enterprises will ensure the full processing of cotton produced in Uzbekistan, which can lead to a significant decrease in the export supplies of this crop. Only in 2017, the country intends to bring internal processing of cotton fiber to 70 percent. At the same time, by 2021 the production of textile and clothing and knitted products will increase by 2.2 times compared to 2016, including ready-made fabrics - 2.7 times, knitted fabrics - 3 times, knitted goods – 3.4 times, hosiery – 3.7 times. It is planned to increase the export of products by 2 times.

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