Uzbekistan will open some 13 cotton textile enterprises by autumn 2018. These enterprises will promote efficient and rational use of land, water and other resources, increase in yields and timely harvesting of raw cotton, and also ensure its further in-depth processing and production of products with high added value.
The new companies will receive a number of benefits and preferences. Among them are: preferential crediting, exemption from payment of customs payments until January 1, 2020, exemption from payment of profit tax and property tax, single tax payment for micro firms and small businesses, payment of mandatory contributions to the Republican Road Fund, deferment of customs payments during the import operation.
These production facilities will buy raw material directly from farms. So far there was no such mechanism for purchasing raw materials first hand. Currently Uzbekistan is the world’s sixth largest cotton producer among 90 cotton growing countries. It produces about 1.1 million tons of cotton fiber annually, which accounts for about six per cent of global cotton production. The country exports cotton mainly to China, Bangladesh, Korea and Russia.
One of the policy priorities of Uzbekistan is further development of its textile industry. Uzbekistan takes consistent steps to increase the volume of cotton fiber processing.