According to a report on the Uzbekistan NOPMA website on the 9th, according to the recently promulgated presidential decree “On Specific Measures to Adjust the Business Activities of Cotton Spinning Consortiums”, the Uzbekistan Cabinet recently issued “On Approval of Cotton Spinning Consortium Business Activities” “Provisions on the Organizational Procedures for Consortium Business Activities” decree to further stimulate and release the development potential of the cotton spinning industry.
The law stipulates:
1. Applicants must apply for leasing land in accordance with legal procedures and obtain approval from the state Only after review and approval by the committee can the qualification to establish a cotton spinning consortium be obtained;
2. A consortium with a production and processing capacity of more than 50% of self-produced or purchased cotton raw materials
3. Applicants for the establishment of a cotton spinning consortium must cooperate with the Ministry of Agriculture of Uzbekistan, the Textile Industry Association of Uzbekistan, and the Karakalpakstan Council of Ministers (or state government) signs a four-party agreement with a term of 30 years. If the applicant is a foreign-invested enterprise or foreign legal person, the agreement period is 25 years.
4. In accordance with market principles, all cotton spinning consortiums can purchase cotton from cotton farmers (farms) through agreement or signing of futures contracts. </p
