Uzbekistan introduces modern forms of organization of cotton and textile production

It should be mentioned that starting with the cotton crop of 2018, an experiment is being conducted in Uzbekistan. Domestic textile enterprises can directly order and can make advance payment to farmers and agriculture producers for production of raw cotton.

The government approved a list of 13 enterprises of cotton-textile production, which will participate in this experiment, according to Norma.uz.

According to the decree, these enterprises promote efficient and rational use of land, water and other resources, increase yields and timely harvesting of raw cotton, and also ensure its further in-depth processing and increase in the production of products with high added value.

They will also enjoy conditions, provided for farmers on acquisition of agricultural machinery in leasing, supply of mineral fertilizers, seed, fuel and lubricants, chemical protection products of plants and other material resources.

Cotton fiber, produced for its own needs within the cotton-textile production, is certified on a voluntary basis. In general, cotton fiber is subject to mandatory certification.

The volume of cotton fiber produced, exceeding the need for own production capacity, the organizer of cotton-textile production can sell to other domestic consumers under direct contracts or through exchange trades.

The document notes that the banks will lend the organizers of cotton and textile production in 2018 at the expense of the Fund for Targeted Financing of Government Procurement of Agricultural Products and Equipping with Agricultural Technology under the Cabinet of Ministers.

The resolution also approved scheme of financing of the farmers and agriculture producers by the enterprises.