Required Report: Required - Public Distribution Date: December 14, 2023

Report Number: UZ2023-0002

Report Name: Cotton and Products Update

Country: Uzbekistan - Republic of

Post: Tashkent

Report Category: Cotton and Products

Prepared By: FAS Staff

Approved By: Rishan Chaudhry

Report Highlights:

Uzbekistan’s cotton production in marketing year (MY) 2023/24 is estimated at 621,000 metric tons
(MT) (2.85 million bales). Cotton consumption in MY 2023/24 is forecast lower year-to-year at 599,000
MT (2.75 million bales) due to lower demand from importer countries like Turkiye and Russia for
cotton yarn and fabric. There has been a decline in exports of both yarn and fabric in 2023, following the
trend seen in 2022, due to a global decline in demand for ready-to-wear apparel and garment. As of
2023, the Government of Uzbekistan (GoU) will not enforce a minimum price for raw cotton.
Additionally, farmers will be able to choose which cluster they want to sell their raw cotton to within
their region, and if there is a surplus of raw cotton it will be traded in an exchange.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY
STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY
I. Production
The total cotton area planted for marketing year (MY) 2023/24 is projected at 950,000 hectares (ha), 3
percent less than the last MY. The primary reason for the reduction in acreage is the government’s land
redistribution policy, aimed at enhancing the country’s food security and increasing household incomes.
Lint cotton production in MY 2023/24 is forecast to be lower than the previous year at 621,000 metric
tons (MT) (2.85 million bales), as weather conditions were not as favorable as the previous MY. On the
other hand, yield-enhancing investments in planting, harvesting, and processing of cotton continues.
Market sources indicate that cotton prices have been very low this MY, resulting in cotton that may be
left unpicked. Low demand for yarn and fabric led to decreased demand for cotton, and cotton spinning
mills have been working as low as 50 percent capacity.
As of fall 2023, the Uzbek Association of Cotton-Textile Clusters (UACC) reports that there are
currently 142 cotton clusters that are made up of vertically integrated private companies which produce,
gin, and spin cotton. This is eight more clusters than the previous MY. Some of the more fully integrated
clusters also produce fabric and ready-to-wear garments. These clusters all have some land on which
they grow their own cotton, and supplement theirs with cotton sourced from farmers in the area.
According to new Government of Uzbekistan (GoU) policies, minimum cotton prices are no longer
declared by the government, but an advisory minimum price is announced. The advisory price for MY
2023/24 was 8,000 Som/kg (approx. 0.65 USD/kg). According to market sources, many farmers and
clusters did not make money from cultivating cotton during the MY 2023/24 harvest, while others saw
just 10-12 percent profit. Decreasing profit margins in cotton farming may, in the medium run, result in
decreased cotton planting area and less cotton production.
Poor soil quality in cotton-growing areas due to decades of unsustainable growing practices has led
many cotton clusters to undertake efforts to improve soil quality on their own, according to market
sources. As an example, some are increasing organic material in their fields. In addition, many are using
soil washing techniques to reduce soil salinity resulting from climate-related factors and the scarcity of
water. These investments to enrich and revitalize the soil are important in maintaining current yields
and, if continued, could lead to slight increases in overall yields.
According to the GoU, the UACC, as well as other market sources, mechanical cotton picking is
increasing because labor scarcity and cost. However, Post estimates that only a small amount of cotton is
currently mechanically harvested. Looking forward, the trend towards increased mechanization is
expected to quickly expand, with clusters investing in mechanical pickers to use on their farms and the
private farms from which they source their cotton. Uzbek news sources reported in August 2023 that the
first local tractor was produced in the agricultural machinery cluster of Uzbekisan. The agricultural
machinery cluster of Uzbekistan has an annual capacity of producing 15,000 tractors, trailers, and other
equipment.
Cotton growers are facing rising input costs for fertilizer and fuel which is narrowing profit margins.
While fertilizer prices have increased, they likely would have climbed even higher had Uzbekistan not
produced most of its fertilizer needs. According to the UACC, 85 percent of the country’s fertilizer is
produced domestically.

Cotton and Products Update Report, 2023, Uzbekistan 2

New Regulation Aimed at Increasing the Use of Certified Seed
In December 2022, the GoU passed a new regulation requiring cotton and other crop seeds to be
certified by the Uzbek government seed testing agency. The purpose behind this regulation is to increase
the use of better-quality seeds in order to increase crop yields. The agency charges a fee to test and
analyze the seed and issues a certificate of conformity if the seed meets the specified standards.
These certified seeds were used for planting in spring 2023 for MY 2023/24. Market sources are
indicating that clusters can now choose which seed they want to use and even import seeds if they like.
Better Cotton Initiative Launches Sustainable Cotton Program
In November of last year, the Better Cotton Initiative conducted a seminar in Tashkent to formally
launch its Better Cotton program. The program aims to produce “better cotton” (known as BCI cotton)
through a focus on sustainability by using less water, fertilizer, and pesticides, and free of forced labor.
BCI-grown cotton is preferred by many western brands that target upper-middle and high-income
consumers. According to the Ministry of Agriculture, there were three clusters working toward
producing BCI cotton on 35,000 ha of land in 2022. Post predicts that Uzbekistan will increase its
production of BCI cotton in the short- to medium-term. Additional information is available at Better
Cotton’s web page. Better Cotton signed a “Roadmap of Sustainability Developments” with key
stakeholders in Uzbekistan to drive further improvements in the country’s cotton sector in June 20231.
In addition to BCI cotton, Uzbekistan is working on producing organic cotton. According to news
sources, a cotton cluster in the Bukhara Region harvested organic cotton for the first time on 3,000 ha of
land during the MY 2022/23 season. The cotton was certified as organic by the Dutch firm Control
Union and was used to produce cotton yarn for export to Japan. As of 2022, there were reportedly
12,000 ha of land that were being transitioned to grow organic cotton in the future. According to GoU
and market sources, organic cotton production continues with little increase in MY 2023/24 and few
other regions are in the pipeline to be able to produce organic cotton in the near future.

II. Consumption
MY 2023/24 cotton consumption is forecast to decrease year-to-year to 599,000 MT (2.75 million bales)
despite increased demand resulting from the ongoing investments in the country’s textile sector. This is
a result of low demand for cotton yarn and fabric, the major export of the Uzbek textile industry, and
declining demand from countries like Turkiye, Russia, the United States, and the EU in connection with
decreasing demand for ready-to-wear apparel in 2023.
Almost all of Uzbekistan’s cotton is used by the country’s yarn factories. With this contraction in
demand, Uzbekistan’s textile and garment factories are operating at reduced capacity as of fall 2023, (40
to 60 percent) even with access to sufficient supplies of domestic cotton.
Investments in Uzbekistan’s textile industry continue amid continuing geopolitical challenges, such as
the war in Ukraine and the Israel-Hamas conflict, global macroeconomic slow-down, and a downturn in
global apparel demand. These investments, especially in the country’s yarn, fabric, and read-to-wear
garment industries, suggest that cotton consumption will increase in the future. As these investments

1
News https://www.textiletechnology.net/fibers/news/better-cotton-strengthening-uzbekistans-sustainable-cotton-production-
34258

Cotton and Products Update Report, 2023, Uzbekistan 3

continue, Uzbekistan may start importing cotton in coming years. In fact, some market sources are
already reporting that it was becoming increasingly difficult to source local cotton in MY 2021/22 when
global demand for clothing was at a higher point at the end of COVID-19 lock-downs in Europe, the
U.S., China, Russia and Turkiye. As apparel orders from western buyers did not pick up for any
apparel/garment producer country as of fall 2023, Uzbek yarn factories have started to both produce
stock for inventory and cut back production until market conditions improve.
Looking ahead, Post predicts that continued investments in Uzbekistan’s yarn (and fabric)
manufacturing capacity will ultimately increase total cotton demand and force the country to import
more cotton lint as the ready-to-wear garment market improves.

III. Trade
Exports
In accordance with the GoU’s policy discouraging cotton exports in favor of value-added yarn, fabric
and ready-to-wear garment exports, Uzbekistan’s cotton exports are forecast to continue trending
downward, falling to 3,000 MT (15,000 bales) in MY 2023/24. Another minor reason for the decline of
cotton exports during the last two MY’s is that cotton demand in importer countries such as Turkiye
have declined. This trend will continue in coming years as Uzbekistan uses almost all domestically
produced cotton for domestic yarn factories, and as previously discussed spindle investments are
increasing. As Uzbekistan does not have customs or commodity statistics available, totals are derived
from importing destinations’ customs statistics.
While cotton exports are falling, Uzbekistan’s exports of cotton yarn and cotton fabric have significantly
increased. In the future, Uzbekistan aspires to move higher up along the cotton value chain and become
a major producer and exporter of fabric and read-to-wear apparel and garments. In several speeches, the
President of Uzbekistan has called for the country to become a garment and apparel exporting country.
In the medium to long run Uzbekistan is expected to move in this direction.
There has been a decline in exports of both yarn and fabric in 2022 compared to 2021 due to a global
decline in demand for ready-to-wear apparel and garment in 2022, especially in Europe and the US. As
the demand for clothing has declined in target markets, the raw material for ready-to-wear apparel and
garment such as yarn and fabric have been decreasing in producer countries like Turkiye, hence those
countries import much less from Uzbekistan. It looks like a similar trend remained for 2023.

Cotton and Products Update Report, 2023, Uzbekistan 4

Table 1: Cotton Exports from Uzbekistan (HS Code: 5201), 480lb. Bales and Metric Tons
UZBEKISTAN UZBEKISTAN
COTTON COTTON
Export Trade Matrix* Export Trade Matrix*
Units: Metric Tons Units: Bales
Time Period Aug/July Aug/July Aug/July Time Period Aug/July Aug/July Aug/July
Imports for: MY 2020/21 MY 2021/22 MY 2022/23 Imports for: MY 2020/21 MY 2021/22 MY 2022/23
Turkey 27,448 5,136 699 Turkey 126,068 23,589 3,210
EU 27 412 617 119 EU 27 1,892 2,834 547
(excl. UK) (excl. UK)
China 6,322 0 0 China 29,037 0 0
Kazakhstan 473 385 0 Kazakhstan 2,172 1,768 0
Belarus 93 105 not reporting Belarus 427 482 not reporting

Kyrgyzstan 7 0 not reporting Kyrgyzstan 32 0 not reporting

Russia 786 0 not reporting Russia 3,610 0 not reporting

TOTAL 35,541 6,243 818 TOTAL 163,239 28,674 3,757

Source: Trade Data Monitor
* Uzbekistan does not report trade statistics and is not a WTO member; therefore, the totals will not exactly match the
PS&D tables. These numbers are derived from importing destinations. The table is presented to show the largest buyers of
Uzbek cotton by approximate size. Additionally, Russia has stopped reporting customs statistics; numbers for Russia are
only valid through February 2022.

Table 2: Cotton Yarn Exports from Uzbekistan (HS Code: 5204, 5205, 5207), Metric Tons
UZBEKISTAN
COTTON YARN
Export Trade Matrix*
Units: Metric Tons, Calendar Year (CY)
Imports for: 2021 2022 2023
(9 Months)
USA 291 118 0
Turkey 90,183 141,371 89,080
China 188,139 86,829 83,090
Egypt 13,817 795 14,868
EU 27 (excl. UK) 2,817 19,205 12,070
Ukraine 269 2,277 1,531
Morocco 238 609 753
Armenia 1,168 700 426
Kazakhstan 372 522 351
Kyrgyzstan 36 468 336
Japan 311 110 100
Others 251,440 12,547 296
TOTAL 549,081 265,551 202,901
Source: Trade Data Monitor

Cotton and Products Update Report, 2023, Uzbekistan 5

* Uzbekistan does not report customs or trade statistics and is not a WTO member; therefore, the totals will not account for
all export figures. Additionally, Russia has stopped reporting customs statistics; numbers for Russia are only valid through
February 2022.
Table 3: Cotton Fabric Exports from Uzbekistan, (HS Code: 5208, 5209), Square Meters
(thousands of square meters (m2))
UZBEKISTAN
COTTON FABRIC
Export Trade Matrix*
Units: Units: 1,000 m2, Calendar Year
Imports for: 2021 2022 2023
(9 Months)
USA 0 0 0
Kazakhstan 25,768 25,245 22,298
EU 27 (excl. UK) 52,426 39,617 17,551
Ukraine 12,815 14,689 8,537
South Korea 6,633 4,029 725
Turkey 2,805 2,674 443
North Macedonia 0.676 10 6
Serbia 6 2 0
Japan 435 145 0
UK 1,555 369 0
Russia 188,578 Not Reporting Not Reporting
Others 2,487 12,989 0
TOTAL** 293,510 99,770 49,560
Source: Trade Data Monitor
* Uzbekistan does not report customs or trade statistics and is not a WTO member; therefore, the totals might not account
for all export figures. Additionally, Russia has stopped reporting customs statistics; export numbers for Russia are only valid
through February 2022.
**A few countries measure fabric in terms of MT, whereas most countries measure fabric by m2. For the first 9 months of
2023, Kyrgyzstan’s imports were 442 MT, Azerbaijan’s 382 MT, and China’s were 45 MT. All are negligible amounts in
world trade.

Imports
Imports of cotton in MY 2023/24 are forecast to decline from the previous year at 15,000 MT (70
thousand bales). This projection is based on the global slowdown in yarn demand from fabric and
garment producers and assumes that domestic cotton production will be sufficient to meet most of the
country’s needs. Market sources indicate that yarn production facilities are working under capacity. As
demand for ready-to-wear garments eventually increases, Uzbek yarn factories will increase their
capacity and in turn demand for imported cotton will increase.
Over the last few years, with the expansion of Uzbekistan’s textile industry, the country has started
importing cotton from neighboring countries, such as Kazakhstan, Kyrgyzstan, and Tajikistan. Some
market sources indicate that even cotton from China is being imported from time to time. Looking into

Cotton and Products Update Report, 2023, Uzbekistan 6

the future, Post predicts that Uzbekistan will need to import more cotton since the country’s cotton
production capacity is not enough to keep up with growing demand from the spinning industry.
IV. Policy
New State Support Announced for Cotton Clusters
In January 2023 a presidential decree was adopted introducing “measures to support the activities of
cotton and textile clusters, radical reform of the textile and clothing and knitwear industry, as well as
further increasing the export potential of the sector.” According to the decree, the government will
provide loans totaling $200 million over a three-year period to finance enterprises that export fabrics,
knitted fabrics, knitwear, and finished garments. At the same time, up until April 1st of this year, the
government undertook efforts to attract $500 million in funding from foreign financial institutions to
finance working capital for textile and ready-to-wear garment producers for a two-year period. The
decree also allows these companies to transfer abroad up to $100,000 per year and abolishes the
requirement to pay an advance monthly electricity payment.
Also, as of January 2023 the President of Uzbekistan signed a resolution to guarantee cotton clusters
access to preferential loans for fertilizer, seeds, and fuel for growing cotton. The cotton clusters can
freely decide which cotton varieties to plant and are able to import high-yielding seed varieties from
abroad.
The resolution also stipulates that the government will pay 30 percent of the cost to laser-level cotton
fields. This leveling process is supposed to help farmers use water resources more efficiently.
Additionally, scientific organizations that specialize in cotton growing and agro-service centers will be
assigned to each cluster to help integrate the latest science and production techniques. In parallel with
this support, the President of Uzbekistan has urged cotton and textile clusters to expand their use of
alternative energy and water-saving technologies, while implementing innovative solutions across
cluster activities.
In September 2023 another presidential decree on “additional measures to financially support the textile
industry" was adopted. To provide working capital for enterprises exporting fabrics, knitted fabrics, and
finished garments and knitwear, an Export Support Fund was established and allocated an additional $50
million. The measure is aimed at the full mobilization of the existing capabilities of textile industry
enterprises, further increasing their export potential, and a corresponding change is being made to the
January 2023 decree Post analysis is that this extra support was provided so that in this time of very low
demand for yarn, fabric, and garments, clusters will not risk bankruptcy.

Minimum Price of Cotton

In accordance with the presidential resolution entitled on “measures for the widespread introduction of
market principles in the field of cotton growing”, the Ministries of Agriculture and Economic
Development and Poverty Reduction, the Council of Farmers, Dekhkan Farms and Owners of
Household Plots of Uzbekistan, and the Uzpakhtasanoat (Cotton Growers Association) were given the
joint responsibility to announce the expected minimum price for raw cotton based on an analysis of
world market prices.
In January 2023 the President of Uzbekistan signed a decree on “additional measures to further support
the activities of raw cotton producers,” which consolidated the operation of market mechanisms in this
Cotton and Products Update Report, 2023, Uzbekistan 7
area. According to the decree, the purchase price of raw cotton is determined by “cotton-textile clusters
and farms on the basis of a mutually beneficial agreement.” The advised minimum price is to be taken
into consideration but is not enforced. Several cotton clusters indicated that they determine the price
based on global cotton prices, the supply-demand situation, and other local factors.
According to news reports, in October 2023 the President of Uzbekistan declared in a meeting that
farmers will be allowed to enter into futures contracts with any cluster within their region (note: not
mandatory to sell to a specific cluster, as before). They will also be able to sell surplus cotton that they
could not sell within their own region through an exchange. At the meeting it was also noted that
farmers will be provided with preferential loans in the form of a 60 percent advance payment for
growing cotton for next year’s harvest.
According to market sources, in theory it is now possible for a farmer to sell raw cotton to a different
cluster than the originally designated cluster with a market determined price, but in practice it is still
very hard to sell raw cotton to a cluster that is not originally that farm’s designated cluster and even
harder to negotiate a price that cluster would like to purchase from.
International Labor Organization (ILO) and International Finance Corporation (IFC) Starts a Program
in Uzbekistan to Improve Working Conditions
ILO and IFC launched a new Better Work Program in Uzbekistan in June 2023 to improve working
conditions and drive competitiveness in the country’s key textile and garment industry. IFC, ILO and
Uzbekistan tripartite constituents – including government, employers, and workers’ organizations –
signed an MOU on May 30, 2023, setting out the conditions for the program, which will initially be
operational for 24 months. It will promote labor standards and competitiveness in textile and garment
factories through compliance assessments, training, and advisory services.
GoU Provides $250 million Fund to Postpone Debt of Cotton-textile Clusters
The President of Uzbekistan, Shavkat Mirziyoyev, signed a decree on “ensuring the continuity of
financing of expenditures for state support of agriculture" in June 2023. According to the decree,
repayment of loans allocated by commercial banks to cotton-textile clusters in 2022 will be extended by
one year (up to a total of $250 million). The decree also clarifies the procedure for providing funds to
the Export Support Fund under the Export Promotion Agency to provide working capital for enterprises
exporting fabrics, knitted fabrics, and finished garments and knitwear. Thus, the fund will be allocated
in the following order: in 2023, $50 million; in 2024, $150 million, subject to pay back until January 1,
2026. Post analysis is that this government support is designed to ease the financial conditions of the
cotton-textile clusters that are facing demand difficulties from export markets dues to low demand of
apparel in the developed countries.

VAT on Raw Cotton will be Paid in Installments

A government resolution on “the harmonization of the terms for the payment and accounting of value
added tax (VAT) for producers of raw cotton” was adopted in August 2023. Raw cotton from the 2023
harvest will be accepted by cotton-textile clusters entirely through electronic scales. An automated
accounting program will be launched on calculation and payment of the VAT in installments. Post
analysis that this extra measure was taken to ease the financial situation of the cotton clusters so that in

Cotton and Products Update Report, 2023, Uzbekistan 8

this time of very low demand for yarn, fabric, and garments, clusters don’t go into a risky financial level
or go even bankrupt.

New Criteria are Created for Establishing New Clusters

In a meeting in November 2023 the President of Uzbekistan explained that 122 of the cotton-textile
clusters have debts to the Agriculture Fund and farmers. Based on this, a decision was made to introduce
a new system for organizing clusters and organizing their interaction with farmers. Newly created
clusters will be required to have sufficient financial indicators, production capacity, and equipment.
They will be selected based on an open competition.
A Centralized Digital Agricultural Platform is Being Established

In August 2023 a presidential resolution on “measures to introduce advanced digital technologies in the
field of agriculture" was adopted. According to the resolution, starting September 1st, 2023, the
Agroplatform Information System will be implemented as part of the Digital Agriculture single
integrated platform. This platform envisages the digitalization of the processes of preferential lending
for the cultivation of cotton, grain, fruits, and vegetables, as well as the provision of services to
agricultural producers based on the principle of transparency.
The aim is that until October 2023 a unified database of agricultural land users is to be created on the
Agroplatform Information System. By the end of 2023 a platform is to be introduced to provide services
for the analysis of geoinformation technologies and space images; existing crop placement machinery
will be improved with digital technology. At the same time, the CropAgro information system will be
introduced to receive proposals from land users, electronic placement of crops, coordination, automatic
generation of information and reports.
Irrigation Investments to Help Conserve Water
An estimated 90 percent of all water resources used in Uzbekistan go to agriculture, including wheat and
cotton irrigation, but climate change is affecting the country’s water supply. Continued investments in
land leveling and new irrigation systems will help conserve water resources and keep cotton yields
stable in future. According to the UACC, laser leveling and modern irrigation systems in a field can
result in a 50 percent savings in water usage. However, even these investments may not prove enough in
the long term given the effects of climate change and decreasing water resources.
Establishment of Industrial Zones and a Technopark for Textiles
Through a January 2023 decree, by the end of 2023, small specialized industrial zones for textile
business are to be created in the Andijan, Namangan and Kashkadarya regions. An industrial techno-
park, specialized in detailed processing of textile and leather products, is to be established in the
Tashkent region.
Redistribution of Land for Horticultural Production
As a part of its national agricultural policy, the GoU has been working to diversify the country’s crop
production, moving away from cotton and promoting food security and land ownership opportunities for
low-income and smallholder farmers. This diversification entails leasing land previously used to grow
cotton and grains to produce other crops.

Cotton and Products Update Report, 2023, Uzbekistan 9

In a November 2021 presidential resolution, entitled “Measures to develop family entrepreneurship in
horticulture and viticulture,” the GoU announced that 200,000 ha of land that was previously used for
cotton and grain production would be leased to farmers from 2022-25 to grow horticultural products.
Eligible farmers can lease 0.1-1.0 hectare-sized plots and the government will provide them access to
credit to start cultivation. In July of last year, the President declared at a conference on increasing food
production and increasing household incomes, that 80,000 ha of land had been leased to farmers
growing horticultural products in 2022.
Forced Labor Issues
The most important policy update in 2022 was progress in addressing the longstanding issue of forced
labor. On March 1, 2022, the International Labor Organization (ILO) declared that “Uzbek cotton is free
from systemic child labor and forced labor.” On March 10, 2022, the Cotton Campaign, a coalition of
NGOs and businesses, ended its call for a boycott on Uzbek cotton. The Campaign will now shift its
attention to raising cotton workers’ wages. Leading up to this development, the GoU had instituted one
of its final measures the year before to stop child and forced labor, called “On additional measures to
finance the harvest of raw cotton.”
Prior to 2022, many fashion and ready-to-wear-apparel brands had refused to purchase apparel and
garments produced from fabrics or yarn made from Uzbek cotton due to the child labor and forced labor
issues. In fact, as of 2021 there were 331 brands that pledged not to buy apparel produced from Uzbek
cotton, including many U.S. brands.
Uzbekistan’s government and the country’s cotton sector welcomed the ILO’s declaration and the end of
the Cotton Campaign’s boycott. This development has the potential to increase the country’s exports of
fabric and yarn to a certain extent. However, the capacity to increase exports in the short run is limited
since most of the country’s cotton products are already being exported. In the medium to long-run,
export potential is greater as new production capacity comes online and demand from Western markets,
like the European Union, United Kingdom, and the United States, could grow.
At the same time, Turkish textile and ready-to-wear-apparel companies might increase investments in
Uzbekistan in order to manufacture Western brands. In addition, some international brands might decide
to open production facilities in Uzbekistan. However, the perceived investment risk in the country is still
quite high for many Western companies.
Textile and Garment Exports to EU Benefit from Duty-Free Access
As of April 10, 2021, Uzbekistan was added to the EU’s Generalized Scheme of Preferences2 (GSP+),
which qualifies certain Uzbek exports for duty free access to the EU market on approximately 66
percent of EU tariff lines. This preferential access is a special incentive to support vulnerable developing
countries that ratify 27 international conventions on human rights, labor rights, environmental
protection, climate change, and good governance. From news reports, this policy has already increased
Uzbekistan’s textile and ready-to-wear-garment and apparel exports to the EU by 70 percent in 2021 and
an additional 28 percent in 2022.

2
The EU's Generalized Scheme of Preferences (GSP), created following UNCTAD recommendations in 1971, helps
developing countries (DC) by making it easier for them to export their products to the European Union. This is done in the
form of reduced tariffs for their goods when entering the EU market.

Cotton and Products Update Report, 2023, Uzbekistan 10

Ministry of Agriculture is Testing New Cotton Varieties
In January 2023 the Ministry of Agriculture (MinAg) announced that the Ministry’s Crop Testing Center
in Tashkent and its regional stations are testing new cotton varieties to determine their suitability to the
soil and climatic conditions in Uzbekistan, resistance to disease and pests, and for yields and quality
characteristics. According to MinAg, 85 different cotton varieties were studied and tested in 2022.
Particular attention was paid to fiber yield, fiber density, yardage, tensile strength, specific length,
microns, and weight of 1000 seeds. Based on the test results, cotton varieties will be included in the
State Register for cultivation.
Government Introduces New Tax Requirements
In accordance with a February 2023 presidential decree, producer/trader companies’ information
systems for receiving and accounting of raw cotton, grains and rice must be integrated with the tax
authority’s systems.
In a separate decree, a pilot income tax return program was introduced for employees working on farms
that specialize in cultivating cotton and grains. Participating farms must employee at least one worker
per month for each hectare of land and pay a monthly wage to employees. The pilot program runs from
April 1, 2023, to May 1, 2024.

Cotton and Products Update Report, 2023, Uzbekistan 11

V. Production, Supply and Distribution Tables
Table 5: Production, Supply and Distribution Table, Bales
(thousands of hectares, thousands of 480lb. bales)
Cotton 2021/2022 2022/2023 2023/2024
Market Begin Year August 2021 August 2022 August 2023
Turkey USDA New Post USDA New Post USDA New Post
Official Official Official
Area Harvested 1,060 975 1,070 980 1,030 950
Beginning Stocks 1,774 1,323 1,340 1,673 1,740 1,848
Production 2,865 3,100 3,300 3,100 2,900 2,850
Imports 54 600 25 100 100 50
Total Supply 4,693 5,023 4,665 4,873 4,740 4,748
Exports 53 250 25 25 25 15
Use 3,300 3,100 2,900 3,000 3,200 2,750
Total Dom. Cons. 3,300 3,100 2,900 3,000 3,200 2,750
Ending Stocks 1,340 1,673 1,740 1,848 1,515 1,983
Total Distribution 4,693 5,023 4,665 4,873 4,740 4,748
Stock to use % 39.96 49.94 59.49 61.09 46.98 71.72
Yield 588 692 671 689 613 653
Source: USDA forecasts, FAS Istanbul forecasts.
Table 6: Production, Supply and Demand Table, Metric Tons
(thousands of hectares, thousands of MT)
Cotton 2021/2022 2022/2023 2023/2024
Market Begin Year August 2021 August 2022 August 2023
Turkey USDA Official New Post USDA Official New Post USDA Official New Post
Area Harvested 1,060 975 1,070 980 1,030 950
Beginning Stocks 386 288 292 364 379 402
Production 624 675 718 675 631 621
Imports 12 131 5 22 22 11
Total Supply 1,022 1,094 1,016 1,061 1,032 1,034
Exports 12 54 5 5 5 3
Use 718 675 631 653 697 599
Total Dom. Cons. 718 675 631 653 697 599
Ending Stocks 292 364 379 402 330 432
Total Distribution 1,022 1,094 1,016 1,061 1,032 1,034
Stock to use % 39.96 49.94 59.49 61.09 0.00 71.72
Yield 588 692 671 689 613 653
Source: USDA forecasts, FAS Istanbul forecasts.

Cotton and Products Update Report, 2023, Uzbekistan 12

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