Uzbekistan to allocate $1 bln to domestic processing of cotton fiber
By Aynur Jafarova
Uzbekistan's state-run Uzbeklegprom Joint Stock Company will allocate about $1 billion to increase domestic processing of cotton fiber and reduce its export in 2015-2020, Head of the Uzbeklegprom Main Department Dilbar Makhmudova was quoted by Trend Agency as saying on September 5.
She noted that to this end, a program is being discussed by a number of ministries and departments for the development of light industry for the next five years.
"The program provides an increase in domestic processing of cotton fiber from 44 percent this year to 70 percent in 2020, with a corresponding increase in textile export from $800 million to $1.5 billion," Makhmudova said.
The projects to be implemented over the next five years will increase the production of cotton yarn by 2.6 times compared to the expected outcome of the 2014, production of cotton fabrics will increase by 2.8 times, knitted fabric by 2.9 times, jerseys by 2.1 times, and garments by 3.3 times.
Meanwhile the financial resources of the program will be provided through direct investment by domestic enterprises and foreign investors, as well as loans from Uzbek banks.
The light industry's share in Uzbekistan's GDP in the first half
of 2014 amounted to 2.7 percent.
Uzbekistan annually produces about 3.5 million metric tons of raw
cotton and 1-1.2 million metric tons of cotton fiber. About 60
percent of produced cotton is exported.
In 2013, the production of cotton fiber in Uzbekistan increased by 1.4 percent - up to 1.087 million metric tons compared to 2012.
The domestic processing of cotton fiber was increased from 7
percent in 1991 to 44 percent in 2014.
One of the largest enterprises of Uzbekistan engaged in cotton
production is the Daewoo Bukharateks worth $52.3 million. Its
capacity makes it possible to produce 16,000 tons of cotton yarn
annually.