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Measures for the development of the textile industry were discussed
On April 16, a video conference on increasing exports and investments in the textile industry was held under the chairmanship of President Shavkat Mirziyoyev.The textile industry is widely represented in all regions of the country and is one of the sectors with the largest number of jobs. Today, over 6,000 enterprises provide employment for 570,000 people.
In recent years, due to the active attraction of investments and new technologies, productivity in the industry has increased significantly. For example, last year, textile and sewing and knitting products were produced in the amount of 8 billion 200 million dollars, which is 4.2 times more than seven years ago.
Also in 2023, the volume of exports in the industry amounted to 3.1 billion dollars. This year, the industry has entered three new markets, with an export geography of 83 countries.
However, the analysis of the export structure shows certain disadvantages. For example, the share of high-value-added products in the export of finished goods is low. Almost 80 percent of exports still go to the markets of traditional partners. Exports to Europe do not meet expectations.
International standards and certificates are required to increase exports to the markets of developed countries or for brands. However, only 175 enterprises meet these requirements. In 18 districts, the annual production of textile products does not reach even a million dollars.
The meeting analyzed problematic issues and listed the huge opportunities available in the industry.
The analysis of the consulting company Boston Consulting Group shows that the raw material base of our country allows us to produce products worth at least $ 15 billion and create 500 thousand new jobs.
For example, in our country, the cost of one kilogram of yarn is 28 percent cheaper than the global average prices. This represents a great opportunity to increase the production of finished products and a competitive advantage.
In addition, financial support is provided to the industry. At the beginning of last year, $50 million was allocated for projects for the production of fabrics, coloring and finishing, as well as the production of finished sewing and knitting products. After using these funds, it is planned to allocate another $ 100 million.
The Head of State stressed the need to make reasonable use of these opportunities to increase projects and jobs in the regions.
"Our only sure way in this industry is the complete processing of existing raw materials to create high added value and the reorientation of exports from traditional cheap markets to new, more expensive ones," Shavkat Mirziyoyev said.
One of the best ways to increase production is to open branches of large enterprises in makhallas. For example, the Zarafshon Textile factory in the city of Samarkand has opened 11 regional branches. The advantage of this is that there is no need to spend extra time and money on implementing standards or obtaining certificates. Therefore, it is necessary to expand this practice, it was noted at the meeting.
One of the most pressing problems for textile enterprises is access to raw materials. Our country has facilities for processing 1 million 300 thousand tons of cotton fiber, but at the moment about 1 million tons of fiber are produced. Therefore, it is necessary to reduce the cost of growing cotton and increase the yield of fields.
The activities of cotton and textile clusters were also discussed, and proposals were considered to ensure their stable operation.
More than 100 industry entrepreneurs attended the video conference. The President held a dialogue with them.
Entrepreneurs expressed problems and proposals for the construction of textile enterprises, expanding the practice of refunding value added tax in a one-day period, simplifying the receipt of pre-export loans, allocating available financial resources and promoting domestic products.
Responsible persons are instructed to carefully study these issues and develop practical solutions, and, if necessary, make proposals to improve legislation.
Uztextilprom Association plays an important role in the complex development of the industry. It is proposed to reorganize the association so that it is managed by the council of entrepreneurs of each branch of the textile industry. Each region will elect its own representative to the council. The association's staff will help clusters and textile enterprises increase production, investment, exports and create jobs.
The importance of conducting extensive advertising campaigns in European countries, working with brands and increasing the number of exporters with international certificates was emphasized.
It is proposed to organize research and development (R&D) groups in clusters to ensure the integration of science with practice.
Information from the responsible persons was heard on the issues discussed at the meeting.