Uzbekistan introduces new mechanisms for cotton sale
Baku, Azerbaijan, Feb.20
By Nigar Guliyeva - Trend:
Uzbekistan set to improve the mechanism of sales and payments for cotton fiber produced by the enterprises of JSC "Uzpahtasanoat".
Under the resolution of the Cabinet of Ministers, the following procedure established for the sale of cotton fiber: for export - through Uzpahtasanoat JSC (under direct contracts and through exchange trades); on the domestic market to domestic buyers - through exchange trades.
Three new provisions have been approved in this regard: on procedure for the sale of cotton fiber and payments; on procedure for the sale of cotton fiber through exchange trades, which is introduced from March 1, 2018; on procedure for certification and weighing of cotton fiber.
The foreign buyers and organizations of Uzbekistan will accept cotton fiber by quality and weight at cotton terminals.
The sale of cotton fiber at the exchange auctions for the national currency will be carried out by domestic textile enterprises on the basis of a 100 percent prepayment.
Commercial banks are recommended to open revolving credit lines to textile enterprises to finance the purchase of cotton fiber on the exchange trades.
Another provision determines the procedure for selling cotton fiber on the exchange trades for domestic consumers.
Under the documents, sale of cotton fiber at the exchange auctions is carried out by: JSC "Uzpahtasanoat"; cotton-textile industries and clusters; importing organization (residents or non-residents of Uzbekistan) importing cotton fiber into Uzbekistan for sale on the domestic market.
Cotton fiber purchased by buyers on exchange trades is used exclusively for production purposes by organizations of the republic.
In 2017, more than 2.93 million tons of raw cotton were produced in Uzbekistan, according to the official statistics. Some 3.1 million tons of raw cotton are planned to be produced in Uzbekistan in 2018.