Uzbekistan will deepen reforms in the textile industry to fully reprocess raw cotton domestically and increase the export potential of the country. Stimulating measures will be provided for enterprises engaged in exports of textile products.
Uzbekistan, the world's sixth largest cotton producer, produced 2.3 million tons of raw cotton in 2018. Traditionally, cotton has been Uzbekistan's most important cash crop. But in recent years the country has been taking serious steps to develop its textile industry to produce value-added products rather than exporting raw cotton.
Uzbekistan’s textile exports were up 41.4 per cent in 2018 from the previous year. The aim is to increase export volumes of textile products to $7billion a year by 2025. New cotton textile companies will receive a number of benefits and preferences. 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.
These production facilities will buy raw material directly from farms. So far there was no such mechanism for purchasing raw materials first hand. The country exports cotton mainly to China, Bangladesh, Korea and Russia.