Uzbekistan Secures Leading Positions in the Global Cotton Market
That has been manifest yet another time by the 10th International Uzbek Cotton and Textile Fair that took place October 13-14 in Tashkent and organized under President Islam Karimov’s initiative.
That has been manifest yet another time by the 10th International Uzbek Cotton and Textile Fair that took place October 13-14 in Tashkent and organized under President Islam Karimov’s initiative.
The international fair has resulted in contracts for the supply of 580 thousand tons of Uzbek cotton fiber, and those worth more than 1 billion US dollars for the supply of domestic textile products. The Uzbek cotton and textiles are in great demand in the world market, helped considerably by this fair.
As it was pointed out at an international conference held as part of the fair, it has become one of the most significant events in the global cotton industry in 2014, and which gathered in excess of 1,000 representatives of business circles, experts and specialists from nearly 50 countries of the world in one place.
They have not only discussed a wide range of issues related to the cotton industry, including production and consumption, enhancement of trade and investment cooperation both in Uzbekistan and the entire planet, but also were introduced to quality characteristics of the Uzbek cotton and reached mutually beneficial deals. As experts suggested, Uzbekistan has made considerable achievements in recent years to uplift its export capacities, to consistently shift the structure of supplies to external markets from raw material orientation to finished goods with higher added value.
It was stressed that Uzbekistan’s cotton export policy is distinct with its provision for equal opportunities for all potential customers, absence of any limitations with regard to volumes of contracting, terms of payment and supply. The country uses a flexible system of fixation of prices in order to reduce the possibility of risks in the global market. Applied during several years, the transparent system of pricing on the basis of index A Cotlook helps avoid sharp fluctuations in prices on the Uzbek cotton.
Moreover, the logistics system established in the country that comprises more than 20 specialized cotton terminals, including 4 free storehouses, whose total volume of simultaneous storage reaches 410 thousand tons of cotton fiber, as well as the transport infrastructure facilitate a timely supply of Uzbek cotton to all customers. Export cotton operations are assigned to three external trade companies – Uzmarkazimpex, Uzprommashimpex and Uzinterimpex, who ensure stable supplies all year round jointly with their representative offices and trading houses abroad.
One of the most critical achievements of the cotton ginnery industry of the country has been the modernization and technological renewal of production capacities, the systemic introduction of international quality standards and technical regulations that ensure the competitiveness of products in external markets. This year alone, the technological modernization of four enterprises – Manghit Ginnery in the Republic of Karakalpakstan, Muzrabad and Kyzyryk Ginneries in Surkhandarya Region, Baghat Ginnery in Khorezm Region – is projected to be completed in the sphere. In addition, a scheme has been underway by the Uzpaktasanoat Association in cooperation with the International Development Association to raise the energy efficiency of enterprises for the sum of 3.8 million dollars.
Special attention in the sector is paid to the expansion of mechanized picking of cotton, which reflects on growth in the production of domestic modern cotton harvesting machines that cater to the needs of Uzbekistan’s farmers in terms of technical characteristics and price parameters. More than 1,200 such cotton picking machines are currently at work in the country’s fields.
Along with that, measures are taken to elevate the liquidity and quality of the Uzbek cotton fiber. In particular, wide-ranging works are undertaken by local breeders, who have bred about ten new species of cotton in recent years. The fair participants were able to get familiar with their quality characteristics at an exposition laid in the Uzexpocenter. Of special interest were the transgenic breed sorts “Porlok” distinct with their high productivity and the advanced root system.
A separate pavilion of the Uzexpocenter presented a wide range of goods from enterprises of the country’s light industry, including cotton yarn, cloth, fabrics, readu sewing and knit as well as silk products. All this speaks of the intensive development of our country’s light industry, which is represented today by around three thousand enterprises, 300 of which are in the system of the Uzbekyengilsanoat State Joint Stock Company.
During the independent development years, two billion dollars of investments were drawn in order to advance the light industry of the country, more than 200 new projects have been implemented on the modernization of the existing and the construction of new enterprises with the participation of investors from Singapore, South Korea, India, Turkey, countries of the EU and CIS, Japan, United States and other nations. Products of some of them were exhibited at the 10th International Uzbek Cotton and Textile Fair. Among them was the exposition of the Plasteks Group of Companies established with the involvement of investments from abroad.
According to the manager for the foreign economic activity at the JV Plasteks Co. Ltd Abror Razikov, production of high quality worsted spinning yarn has been launched at one enterprise, while another has started to manufacture knitted cloth. The major part of the produced goods is exported by the company to China, Russia, Turkey, and European countries. Owing to the annual participation in the fair, the number of business partners has been growing. Thus, around 10 agreements were concluded this time around to supply goods abroad.
Participation in the fair has helped also many other Uzbek manufacturers to enhance the range of partners. Notably, B.S.H Group of Companies in Samarkand has found customers for its new merchandise – jeans wear, the production of which was launched this past September. The Tashkent-based foreign enterprise BF Textile that produces children’s, women’s and menswear from domestic cotton fabrics has concluded several export agreements.
Direct cooperation has been established thanks to the fair by the JV Shindong Spinning Termez, set up with the involvement of investments from South Korea. Outfitted with state-of-the-art equipment from the world’s leading manufacturers, it produces around 10 tons of high quality yarn a day.
“We export more than 95 percent of our goods,” says Gulmurat Tukhtashev, commercial director of JV Shindong Spinning Termez. “Owing to the participation in the fair we have signed new contracts for the sum total of over 700 thousand dollars with manufacturers from China.”
In general, the fair participants from abroad expressed great interest and willingness to cooperate with Uzbekistan. That was facilitated also by the presentation of the investment potential of Uzbekistan’s regions that took place within the fair, new projects designed to boost the textile industry as well as the visit to the cotton reprocessing factory “Uzbekiston”, to the cotton terminal Tashkent-Tola in Tashkent Region and the textile enterprise Uztex-Chirchik.
In a word, the 10th International Uzbek Cotton and Textile Fair demonstrated once again the high quality and competitiveness of the Uzbek cotton fiber and textile goods. This is suggestive of the fact that in modern economic conditions Uzbekistan has all the capacities to explore new markets and consolidate its leading positions in the global market.