Uzbekistan Boosts Support For Textile Sector Amid Global Price Decline

(MENAFN- Trend News Agency) 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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