Tashkent, Uzbekistan (UzDaily.com) -- At present, representatives of the foreign and domestic textile industry are interested in one question: will Uzbekistan refuse to export yarn?

In his speeches, speaking about the textile industry, the Head of State repeatedly repeats that the main goal is to achieve deep processing of cotton fiber and increase the share of finished textile products. For example, in his Address to the Oliy Majlis on 20 December 2022, the Uzbek President set the task of increasing exports in the textile industry by 1.5 times, that is, up to US$5 billion. It was determined that the supply of export products to the European market in the amount of US$500 million using existing GSP + preferences is a priority.

The refusal to export cotton fiber led to the efficient use of domestic capacities and gave good results.

It is known that the current system provides for a phased reduction in the export of yarn, by increasing the processing of yarn within the country and the export of finished garments and knitwear.

In particular, by Decree of the President of the Republic of Uzbekistan “On urgent measures to support the textile and clothing and knitwear industry”, when exporting cotton yarn and knitted fabric (except for dyed knitted fabric) across the customs border of the Republic of Uzbekistan, from 1 January 2021, a fee for each kilogram of exported yarn in the amount of USD 0.01, from 1 January 2022 for each kilogram of exported yarn and knitted fabric – US$0.05, from 1 January 2023 – US$0.1, from 1 January 2025 – US$0.2.

If you look at the numbers, 100 percent processing of 1.1 million tons of cotton fiber produced in the republic has been achieved. However, 40% of the yarn produced is processed domestically, while the remaining 60% is supplied to foreign markets. Yarn accounts for 45% of the total share of exports of textile products of the republic. The main sales markets are Turkey, China, CIS countries.

In 2023, according to the Strategy for the Development of the Textile Industry, it is planned to increase the export of textile products by 1.5 times, primarily by bringing the deep processing of yarn to 60% and expanding the production of high value-added products, including home textiles and carpets, bringing the annual processing of artificial fiber to 80,000 tons, localization and development of more than 50 new types of products.

Currently, exports of cotton yarn are subject to a fee of US$0.1 per kilogram of exported yarn starting from 1 January 2023.

In order to mitigate the impact of geo-economic instability on the activities of enterprises in the industry and support local producers, including spinning mills and clusters, in order to maintain their competitiveness in the foreign market, the Uztekstilprom Association, together with the ministries and departments involved, developed and submitted for approval a draft Decree of the President, providing for amendments to paragraph 8 "b" of the Decree of the President of the Republic of Uzbekistan No. PF-5989, that is, from 1 January 2023, charging a fee of US$0.05 for each kilogram of exported yarn and maintaining the level of 2022.