As it follows from the resolution of the Cabinet of Ministers of January 25, 2018, in 2018, 13 textile clusters will be created in Uzbekistan, to which 140,900 hectares of land are allocated. 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.
13 textile enterprises - organizers of the cotton-textile cluster will independently conclude direct contracting contracts for the cultivation and supply of raw cotton with farmers and advance them, the document says.
The volumes of cotton fiber produced, which exceed the need for own production, are allowed to be sold under direct contracts or through exchange trades.
The cotton seeds obtained are sold to them by the fat and oil enterprises on a give-and-take basis, followed by the sale of fat and oil products through exchange trades, and waste from the processing of seeds (meal, husk) - under direct contracts.
The document notes that the price for raw cotton purchased by textile enterprises is established by the organizers of the cotton textile cluster independently, based on costs taking into account the profitability of farms.
It should be recalled that in December 2017 the President of Uzbekistan signed a decree on liquidation of the joint-stock company "Uzbekengilsanoat", combining state regulatory and economic functions in the field of light industry.
The reason was that the current system of management of the industry did not meet the current trends in the development of the textile industry and is not capable of supporting producers.
According to official statistics, in 2016, Uzbekistan produced 2959 thousand tons of raw cotton, which was 98.6% by 2000. Speaking at a solemn meeting on the occasion of the Day of Agricultural Workers in December 2017, the President of Uzbekistan announced that in 2017 the cotton growers of the republic produced more than 2930 million tons of raw cotton.
According to the official forecast, in 2018 Uzbekistan planned to produce 3.1 million tons of raw cotton. A valuable technical culture will occupy more than 1.1 million hectares of irrigated land. The state order will be 50% of the harvested crop.