Tashkent, Uzbekistan  (UzDaily.com) -- SJC Uzsanoatexport has signed a 1st ever co-operation agreement with Bangladesh based Priority Yarn and Cotton Solutions LLC totaling to US$20 million for a volume of 7,000,000 kilograms of Uzbekistan manufactured cotton yarn to be delivered in 2023-2024.

The key features of the deal leverage the key strengths on both parties – namely experience and track record. Uzsanoatexport, a major exporter of cotton yarn, has exported more than US$100M worth of cotton yarn in the last 24 months. Priority, from Bangladesh is providing innovative solutions in market access, supporting of exports under letters of credits end to end logistics to deliver Uzbek origin yarn to Republic of Bangladesh.

“Uzsanoatexport is actively developing new marketing strategies to support Uzbekistan’s growing robust yarn and textile value addition manufacturing sector. We view Bangladesh as a highly lucrative and prospective market for our Uzbek manufacturers world class products” said Mr Bakhtiyor Khayrullaevich, acting Chairman of Uzsanoatexport.

According to Trade Data Monitor, LLC (TDM), in CY 2022 the value of Bangladesh’s yarn imports under harmonized system (HS) codes 5204, 5205, and 5207 was about US$1.9 billion. In 2022, India supplied 74 percent of Bangladesh’s total yarn imports, followed by China (12 percent) and Pakistan (7 percent). According to US$A reports, collectively for 2021-22, Uzbekistan has exported more than 800,000metric tons of cotton yarn (estimated value at US$2 Billion). Currently, under the positive strategies of Government of Uzbekistan, Uzbekistan has developed to be one of the largest vertically integrated “farm to fashion” set up in the world – hence well positioned to be a global powerhouse for international textile and apparel markets.

“The envisioned bilateral yarn trade between Uzbekistan and Bangladesh is well positioned leverage on both countries unique strengths to create win-win deliverables in near time. Uzbekistan possess high quality yarn that will meet Bangladesh demands of raw materials for its international textile and apparel exports” said Mr. Haji Mohamed Abdul Hai, Chairman of Priority Yarn and Cotton Solutions LLC.