President Shavkat Mirziyoyev presided over discussions aimed at enhancing the cotton production system in Uzbekistan. The meeting, held on December 12, delved into measures to address existing challenges and usher in a new era of efficiency and sustainability in the cotton industry, govermental portal of Uzbekistan reported.
Acknowledging the need for reorganization and advanced approaches, the President emphasized the importance of fostering improved relations between cotton clusters and farmers. Proposals presented during the meeting outlined a strategic shift in the dynamics of the cotton industry, with a focus on introducing innovative practices for the benefit of all stakeholders.
One key proposal involves establishing a new order of relations between cotton raw material growers and cotton-textile clusters, effective from the harvest of 2024. The innovative approach includes the use of futures contracts within the framework of soil productivity, facilitated through trades on the Commodity Exchange. This system allows farmers to place their cotton on the stock exchange, with regional clusters engaging in futures contracts, promoting fair competition and ensuring a higher price for the growers.
Furthermore, the meeting emphasized the importance of training seminars to educate farmers on participating in the stock exchange. The shift to electronic scales and the introduction of an automated accounting system for cotton fibers were also highlighted, ensuring transparency and efficiency in transactions.
A significant development is the introduction of a credit-module system for allocating loans to farmers and clusters from the Agricultural Support Fund, starting from the harvest of 2024. This move is expected to streamline the allocation process, with suppliers selected voluntarily by farms and clusters through electronic credit orders.
The reorganization of cotton-textile clusters was also addressed, emphasizing the necessity for applicants to have at least two stages of the textile production process and maintain financial integrity. The selection process for cluster activities will transition to an open and transparent online competition, promoting fairness and efficiency.
To boost cotton seed development and productivity, the President approved the experimental placement of foreign cotton varieties on 10% of cotton-growing areas, beginning next year. Special agrotechnical and simplified quarantine requirements for imported cotton varieties were emphasized, ensuring safe cultivation under the supervision of the Cotton Council.
In a bid to encourage the creation of new cotton varieties, farmers and clusters are granted the freedom to co-author relevant varieties. Certified seed production is set to transition gradually to clusters and private enterprises, fostering innovation and diversity in cotton cultivation.
The President's decision also encompasses the establishment of a Scientific Research Institute of Fiber Crops, based on the Cotton Industry Research Center. This institution will address the lack of specialized focus on fiber crops, fiber output, and the cotton industry in Uzbekistan.
In an effort to digitize the industry, the introduction of the e-seed platform by the end of 2024 was announced. This platform aims to facilitate seamless integration between seed enterprises and farms, ensuring transparent placement, redistribution, and certification of varieties and hybrids.
Earlier Daryo reported that farmers have gained the ability to participate in futures contracts with any cluster in their region and trade excess produce on the stock exchange. Furthermore, farmers will directly benefit from favorable loans, providing a 60% advance for the upcoming year's cotton cultivation.
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