Uzbekistan’s Textile Export Basket Set To Grow Phenomenally

Economy

Uzbekistan’s Textile Export Basket Set To Grow Phenomenally

The year 2017 proved to be very fruitful for the Uzbekistan textile industry as they managed to notch up USD 1.1 billion worth exports. Uzbekistan’s export basket covered over 50 countries and a significant portion of their textile exports fell under the value-added products category. In fact, the value-added products accounted for 40 percent of the total exports.

According to an Uzbek news agency which quoted an official source from the industry, the phenomenal export growth of the textile industry was attributed to the proactive measures adopted by 64 trading houses that were set up on foreign soils. The figures were provided by Association of Textile and Clothing and Textile Industries Enterprises (Uztekstilprom).

The Uztekstilprom spokesperson expressed the view “Going ahead we will exercise the option of creating clusters for the textile industry to enhance our development prospects. The cluster model will facilitate the textile industry to organize a single production cycle. The cycle will include farming of raw cotton, processing of the raw cotton at the primary stage and further treatment of processed cotton at the ginneries. This in turn will facilitate the seamless release of the final product.”

Dwelling on the domestic cotton activity in Uzbekistan, the spokesman said, “In 2017 alone, the number of textile exporting units rose steeply from 293 to 350 before the year-ending. The annual production of cotton for Uzbekistan happened to be 1.4 million tonnes. Nearly, 60 percent of this produce caters to domestic consumption.”

In all, the country witnessed the swinging into action of 34 investment projects for purposes of modernizing existing units and founding of new units. This move enabled Uzbekistan to create an export potential of USD 151.7 million The aggregate value of export potential as of 2017 stood at USD 356 million.

Industry experts in the country along with help from the ministry have drawn out a draft proposal for development. The draft plan envisages a medium-term perspective for cotton textile clusters. The experts were able to draw from the rich experience of the existing clusters in the Navoi region of Uzbekistan.

The cotton industry in Uzbekistan is facing a boom with a total of 7000 industrial units operating in the country which are mainly handling natural fibers like cotton, wool and silk.

The Uzbekistan government is in an all-out bid to further enhance the growth of the textile industry by prioritizing policies on the textile front. Currently, on an annual basis Uzbekistan farmers yield 3.5 million tonnes of raw cotton. This translates into 1.1 million tonnes of cotton fiber.

The government in collaboration with industry has plans for creation of 112 modern high –tech factories. In addition, the plan envisages expansion, modernization and technological upgrade of 20 of its operating capacities. The plan once set into motion will yield an export surge of nearly USD 2.5 billion per year besides creating 25,000 new jobs.

Uzbekistan considers its textile sector as one of the most dynamic and socially significant industrial realms. In terms of export realization, the textile sector ranks very high in the country’s economy.