In the textile industry, credit and subsidy reliefs are provided

At a video selector meeting chaired by President Shavkat Mirziyoyev, issues related to the development and support of the textile industry, which accounts for 3 percent of the country's economy and 14 percent of industrial products, were discussed. This was reported by Zamin.uz.

In the last five years, 396 large enterprises with a value of 3.5 billion dollars have been launched in this sector, and production volume has reached 10 billion dollars. Currently, more than 500,000 people are employed in the textile industry, which constitutes one-fifth of the population working in this sector.

At the same time, a decrease in production and export rates has been observed. The drop in the world market price of cotton from 3,000 dollars per ton in 2022 to 1,500 dollars has negatively impacted the activities of clusters.

The meeting criticized some entrepreneurs for improperly using cheap state resources and engaging in speculation of cotton products. The debt of textile enterprises for commercial loans has reached 2.2 billion dollars, 90-95 percent of which is in foreign currency.

It was also noted that only 16 percent of enterprises have international certification. The head of state emphasized that under such conditions, it is difficult for enterprises to compete in the foreign market and repay loans.

Accordingly, a "hundred days of urgency in textiles" program has been announced. This year, the loan term for clusters will be extended to 5 years with collateral, during which only the principal debt will be paid, and interest will be collected after the debt is fully covered.

This measure will ensure that 800 billion soums of annual working capital remains in the clusters. Additionally, penalties amounting to 377 billion soums for the 2022-2023 harvest will be canceled, and the loan term for 144 enterprises with the potential for stabilization will be extended up to 7 years.

Farmers will receive a subsidy of 1 million soums per ton for timely cotton harvesting. If enterprises grow or purchase cotton with their own funds, 10 percent of the raw material cost will be refunded.

Furthermore, the social tax rate for all textile enterprises will be set at 1 percent, and the share of textiles in the realization volume will be reduced from 90 percent to 70 percent. It was emphasized that strict control will be established over the implementation of the measures set at the meeting.

According to President Mirziyoyev, these steps are of great importance for adapting to market demands, strengthening production and export potential, and taking the industry to a new level. Source: zamin.uz