The President demands an urgent plan to save textile exports
Uzbekistan
The sharp drop in global cotton prices has placed Uzbekistan's textile industry in a serious challenge. President Shavkat Mirziyoyev at a videoconference meeting demanded immediate action from the government and businesses to preserve production, jobs, and export positions.
The sharp decline in global cotton prices has put Uzbekistan’s textile industry under significant pressure. At a video conference chaired by President Shavkat Mirziyoyev, urgent measures were set to safeguard production, jobs, and export capacity.
The textile sector accounts for 3% of the country’s GDP and 14% of industrial output. Over the past five years, $3.5 billion has been invested, 396 large enterprises have been launched, and production volumes have reached $10 billion. More than 500,000 people are employed in the industry, representing around 20% of the national industrial workforce.
However, recent months have seen a slowdown in production and exports. The main reason is the steady fall in global cotton prices since 2022. In the past three years, prices have dropped from $3,000 to $1,500 per ton, dealing a severe blow to the cluster system.
Many producers are forced to repay old debts using proceeds from the new harvest. To support the sector, the government has extended concessional loans for cotton purchases from 2022–2023 three times, and last year provided subsidies of 1 million soums per ton to stabilize prices.
President Mirziyoyev emphasized that the crisis was foreseeable and instructed the economic leadership, in cooperation with scientific institutions, to develop multiple scenarios and comprehensive solutions to ensure the industry’s long-term stability.
The textile sector accounts for 3% of the country’s GDP and 14% of industrial output. Over the past five years, $3.5 billion has been invested, 396 large enterprises have been launched, and production volumes have reached $10 billion. More than 500,000 people are employed in the industry, representing around 20% of the national industrial workforce.
However, recent months have seen a slowdown in production and exports. The main reason is the steady fall in global cotton prices since 2022. In the past three years, prices have dropped from $3,000 to $1,500 per ton, dealing a severe blow to the cluster system.
Many producers are forced to repay old debts using proceeds from the new harvest. To support the sector, the government has extended concessional loans for cotton purchases from 2022–2023 three times, and last year provided subsidies of 1 million soums per ton to stabilize prices.
President Mirziyoyev emphasized that the crisis was foreseeable and instructed the economic leadership, in cooperation with scientific institutions, to develop multiple scenarios and comprehensive solutions to ensure the industry’s long-term stability.
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