TASHKENT, Uzbekistan, August 13. In the last five years, a whopping 396 large enterprises have sprung up in Uzbekistan’s textile sector, reeling in $3.5 billion in investments and sending total production soaring to $10 billion, Trend reports.
The announcement came during a video conference chaired by President Shavkat Mirziyoyev, which focused on further supporting the textile industry—a sector that contributes 3 percent to the national economy and 14 percent to industrial output.
Nonetheless, the deceleration in production and export
trajectories has necessitated the implementation of immediate
strategic interventions to sustain output levels, preserve
employment, and ensure the integrity of export volumes in the face
of evolving global dynamics.
The global cotton market has experienced a pronounced contraction
since 2022, with prices plummeting from $3,000 per ton to $1,500
per ton over a three-year horizon, thereby engendering substantial
obstacles for textile clusters. A multitude of entrepreneurs are
strategically reallocating capital derived from recent harvests to
service legacy debt, thereby establishing a nexus of financial
commitments across agricultural cycles.
In order to address these challenges, preferential financing
mechanisms for cotton feedstock for the 2022–2023 cycle were
implemented on three separate occasions, alongside the allocation
of subsidies amounting to 1 million soums ($91) per metric ton in
the previous fiscal year to bolster agricultural producers and
ensure market price stabilization.
President Mirziyoyev articulated that the recent depreciation in
pricing was not an instantaneous phenomenon and underscored the
necessity for the economic apparatus, in conjunction with research
entities, to devise a spectrum of scenarios and strategic solutions
to adeptly navigate such market oscillations.
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