Commentary on the decision: Cotton raw material growers will receive financial support

On September 13 of this year, the Cabinet of Ministers of the Republic of Uzbekistan adopted decision No. 574 "On financial support measures for cotton raw material growers".

According to the decision:

Starting from 2024, futures contracts for the supply of cotton raw materials between cotton raw material growing farms and clusters and textile enterprises with a cotton raw material processing and yarn production chain will be implemented within the framework of soil fertility regulations. It is compiled according to the results of trades held separately for each region in the "Cotton Raw Materials Section" of the Republic of Uzbekistan Commodity Exchange.

Also, Futures is the stock exchange of raw cotton produced by producers in excess of the volume that should be delivered according to the contract, as well as without concluding a futures contract with processors, at the expense of their own funds, including attracted funds and commercial loans. It is indicated that it will be sold or (and) processed to business entities.

According to futures quotations of cotton fibers in the world market during the harvest of 2024, the initial futures prices of cotton raw materials are around 6 million 800 thousand soums per ton, and the raw materials of the Republic of Uzbekistan The initial futures price of one ton of cotton raw materials of the first grade and second grade from the harvest of 2024 will be announced at the stock exchange in the amount of 7 million 800 thousand soums.

Agriculture under the Ministry of Economy and Finance for one ton of cotton raw materials (excluding cotton raw materials and seed cotton grown by cotton-textile enterprises) sold by cotton growers through stock exchanges (on the basis of electronic invoices) A subsidy in the amount of 1 million soums will be allocated from the funds of the state support fund.

For the year 2024, the conclusion of an additional agreement between cotton growers and processors on contracts concluded in the stock market, taking into account that the selling price of cotton raw materials will not be less than 6 million 800 thousand soums.

In addition to the futures contracts from the harvest of 2024, announcing the starting price of cotton raw materials in the stock market in the amount of not less than 6 million 800 thousand soums per ton;

In addition, in 2024, 20 percent of the cost of the picking service for each ton of cotton picked by cotton picking machines in all regions, but not exceeding 250 thousand soums, will be covered from the funds of the Fund. passed.

Accordingly, "Uzagroinspeksiya" organized mobile arbitration groups in all regional offices in order to harvest the cotton crop on time this year and resolve disputes on the spot.

"Uzagroinspeksiya" monitors the prompt resolution of disputes on the acceptance of the 2024 cotton harvest, as well as the correct analysis of the quality indicators of the received cotton raw materials.

K. Akhmedov, Head of the Inspection Department