The textile industry is crucial for Uzbekistan’s development as the country possesses its own source of raw materials such as cotton, silk and wool along with well-educated and abundant workforce, an important prerequisite for securing more jobs and increasing living standards of the population.

UNDP in Uzbekistan has released a policy brief that reviews development of the textile industry in recent years. The policy brief documents the efforts of the Government on development of the textile industry and important achievements in this sphere. However, it also highlights a number of barriers related to availability of cotton fibre to local manufacturers as well as low marketability of produced fabric and apparel. Cotton and yarn remain one of the main export products, delivered to foreign markets with low added cost.

The Policy Brief also points out on key factors impeding to development of the textile sector such as difficulties in access to high quality raw materials for reasonable prices, high cost of servicing of long term loans as well as complexities in foreign trade operations.

To effectively resolve remaining barriers, the Policy Brief provides recommendations to advance the textile industry in Uzbekistan. In particular, it is necessary to create additional opportunities for local companies with low added cost to access cotton raw, stimulate development of weaving industry, reduce barriers in exporting finished goods and importing raw materials and equipment.

“This Policy Brief examines current status and potential for further development of the sector and provided recommendations for improvement of the regulatory framework in textile industry. We believe this Policy brief will serve as an important milestone in development of the textile industry in Uzbekistan”, said Elena Danilova-Cross, UNDP Human Development Coordinator in Uzbekistan.

The Policy Brief is a publication of the United Nations Development Programme (UNDP) Uzbekistan, which outlines the rationale for choosing a particular policy alternative or course of action in a current policy debate. Its target audience is policymakers, the donor community, independent analysts and other stakeholders.

As earlier reported, Uzbekyengilsanoat state joint stock company (Uzbek Light Industry) will implement 106 projects worth US$1.678 billion in 2011-2015. According to the company data, the capacities on production of cotton yarn will reach 680,000 (+342,600), ready fabrics – 460 million square meters (+266.4 million square meters), stockinet – 162,000 tonnes (+83,400 tonnes), ready knitwork – 350 million units (+202.8 million units), ready-made garments – 85.3 million units (70.7 million units) and hosiery products – 140 million pairs (+92.8 million pairs) by 2015.