BAKU, Azerbaijan, September 25. Liberalizing the cotton market in Uzbekistan is a crucial task,Assistant Food and Agriculture Organization of the United Nations (FAO) Representative in Uzbekistan Sherzod Umarov told Trend.
He noted that it is extremely important to increase yields, allocate land for food crops, and boost farm incomes.
"Cotton holds significant importance as an agricultural product in Uzbekistan, with a long value chain within the economy,” Umarov noted.
The representative added that Uzbekistan has been gradually reducing the land dedicated to raw cotton production. Reforms in the cotton market, implemented in 2020-2021, abolished the state cotton order system. This system previously mandated that all cotton produced in the country be sold to the state and set annual production targets for cotton-growing areas. The end of mandatory state procurement has provided farmers with more freedom and market power.
“However, challenges such as financial market restrictions, limited access to variable and capital inputs (especially for small-scale farmers), and weak contracting conditions still necessitate ongoing liberalization and structural reforms,” Umarov explained.
FAO official also stressed that major prospects for the development of agriculture in the Republic of Uzbekistan are defined in the Agriculture Development Strategy of the country for the period from 2020 through 2030 and the Road Map developed for it.
“The government's vision, as articulated in the Strategy, is to develop a competitive, market-based, diversified, and export-oriented agri-food sector. The aim is to increase farm incomes, create new jobs, enhance food security, and ensure the sustainable use of natural resources,” he said.
Uzbekistan stands as one of the world’s largest producers of natural textile fibers, cotton yarn, and knitwear. The country exported 21,800 tons of knitted products worth $102.9 million from January through April 2023.
As per data by Uzbekistan’s Statistics Agency, cotton yields in Uzbekistan amounted to 678,900 in 2022, with a decrease of 31,700 tons compared to 2021 (710,600 tons).
