The recent launch of a state-backed compensation fund in Uzbekistan, designed to absorb the costs of Better Cotton Initiative (BCI) certification for local producers, signals a major tectonic shift in the global fibre and yarn market. Uzbekistan, which was formerly subject to an international boycott, has successfully transitioned into a fully integrated textile powerhouse, now achieving 100% domestic processing of its raw cotton into yarn.

This pivot from raw fibre export to value-added manufacturing, supported by new government incentives, directly eliminates the primary financial barrier for cotton clusters seeking key international sustainability credentials.

This strategic policy move is expected to inject a massive, newly certified cotton supply into the global marketplace, directly challenging major yarn-producing hubs across South and Southeast Asia. The sudden availability of ethical Uzbek cotton at a cost-competitive price point intensifies the competition for spinning mills worldwide and will likely exert notable downward pressure on global yarn pricing, particularly in the certified fibre segment. With leading global apparel giants publicly committed to sourcing BCI-certified fibre, the ease of entry for Uzbek supply accelerates a fundamental re-alignment of supply chains. As the nation targets $7 billion in textile exports by 2028, this fund solidifies Central Asia's position as a dominant, vertically-integrated player in the responsible apparel sector.