Uzbekistan sets new rules for sale of raw cotton
Tashkent, Uzbekistan, Dec. 14
By Diana Aliyeva – Trend:
Starting from 2018, Uzbekistan will launch in experimental mode the system of ordering and advancing production of raw cotton directly from farms and other agricultural producers by domestic textile enterprises.
This is stipulated in the presidential decree "On Measures for the Accelerated Development of the Textile and Sewing and Knitting Industries".
Under the decree, the variety and volume of purchased cotton, the terms and procedure for its transfer are determined by the agreement concluded between the farm and the textile enterprise.
Textile enterprises will finance the costs of farming (cotton seeds, mineral fertilizers, fuels and lubricants, chemical protection of plants, wages and salaries and other services) by initially paying at least 60 percent of the value of the contract.
The price for raw cotton purchased by enterprises of the textile industry will be defined on a contractual basis through analysis of the actual costs and profitability of farms and should not be lower than the established prices for state needs.
Moreover, the Cabinet of Ministers of Uzbekistan was instructed to ensure, by Jan. 10, 2018, to renew contractual agreements for the cultivation and supply of raw cotton in accordance with the established procedure, taking into account the introduced experimental system; also to define until Jan.15, 2018 the territory and area of land for the experiment; as well as establish government procurement prices for cotton crop of 2018.
Also, the Cabinet of Ministers, taking into account renewed contracts, must determine, by Jan. 20, 2018, the volume of the order of Uzpakhtasanoat JSC for the sowing of cotton in 2018 for farms that are not covered by contractual agreements for the cultivation and supply of raw cotton directly to enterprises of the textile industry , as well as participants in cotton-textile clusters.