NEWS AND EVENTS
October 21, 2008
On the Fourth International Uzbek Cotton Fair
On October 14-15, 2008, the traditional fourth International Uzbek Cotton Fair took place in Tashkent. The Ministry of Foreign Economic Relations, Investments and Trade jointly with Cotton Outlook Ltd. Magazine, Uzpahtasanoat Association and Uzbek Center for Certification of Cotton Fiber Sifat organized the event.
At the moment, Uzbekistan is one of the leading participants of the world cotton market. The country secures the sixth place in the world on producing and the third – on exporting cotton fiber.
On the initiative of President of the Republic of Uzbekistan Islam Karimov with an aim to expand the geography of exports of the Uzbek cotton fiber, raise the efficiency and optimize the supplies to world market, in 2005 the first International Uzbek Cotton Fair was organized and successfully held in Tashkent. This event gave an impetus to further developing market mechanisms of cotton realization, improving economic relations between the Uzbek and foreign consumers.
Year to year the number of participants of the Cotton fair is increasing. If in 2005 the representatives of about 170 companies from 30 countries took part at the Fair then over 400 representatives of more than 300 largest firms and companies from 34 countries participated at the fourth International Uzbek Cotton Fair in Tashkent. The largest consumers of cotton fiber such as China, Russia, Turkey, India, Pakistan and others are among the participants.
On the outcomes of talks of the Fair held last year over 50 contracts on purchasing about 600.000 tons of cotton were signed. 50.000 tons more of cotton fiber was realized through the trade platform of the Republican Trade and Raw Exchange. On the outcomes of the Fair of this year, the contracts and agreements on purchasing over 950.000 tons of cotton fiber were signed.
The main goals of the current Cotton fair were to conclude contracts on supplying cotton, develop long-term relations between participants of the world market, as well as make consumers of the Uzbek cotton aware about its quality indicators and last innovations in the sphere of cotton production, trade and logistics.
Cotton forum in Tashkent has already become an important event in international calendar of meetings of heads and leading specialists from various countries whose activity is related to production, processing and realization of cotton.
During the Fair the Uzbek suppliers of cotton held talks with delegations from the People’s Republic of China, Russian Federation, Republic of Korea, Bangladesh, Pakistan, Turkey and other states – consumers of cotton fiber.
At the Fair in Tashkent Uzbekistan presented over thousand samples of middle-stapled and fine-stapled cotton. This rich choice which was made possible at the Fair thanks to successful strife of the Uzbek scholars and selectionists allowed for potential consumers not only to consider all technical moments of production and marketing policy but also hold them more flexibly and effectively in the days to come.
The Uzbek cotton enjoys stable and consistent demand in international market. After all, its indicators correspond to the best world standards. Thus, this year about 20 sorts of cotton-plant – the most perspective, with high outlet and length, the cotton of high refinement and neat color, with diapason of micro-neiro from 3,5 to 4,9 were put to sale at the Fair. In short, especially this sort of cotton is mostly demanded by the textile industry of various countries.
The scholars-selectionists and geneticists who are engaged in researching more productive sorts of this culture in demand make a tangible contribution in raising the image of Uzbekistan as a country that occupies a leading niche in the world economic relations in the sphere of production and cotton exports. The strategy of developing cotton complex now underway in Uzbekistan has been well and thoroughly thought out. It includes all links - from selection, zoning cotton-plant, collecting and storing - to organizing more optimal routes to ship consumers purchased cotton.
During the Fair foreign consumers signed contracts that considered an entire cycle of cotton procurement to a final destination. This is about the rapid and full testing of quality of cotton at special laboratories, conditions of its warehousing, storing and transportation, as well as financial accomplishment of contracts.
In particular, a well established system of logistics that consists of cotton terminals, transport infrastructure and route corridors are important component of exporting cotton. At the moment, 22 specialized cotton terminals, including five terminals with spacious warehousing are operating in Uzbekistan. Total volume of single-time storing makes up over 400.000 tons of cotton. With an aim to diversify and optimize supply routes of the Uzbek cotton to foreign markets the elaboration of the most effective transport corridors are being continued.
Such factors as the highest quality of cotton, stability and timeliness of its supplies are the main advantages of the Uzbek cotton at the world market given tough competition. The distinction of cotton exporting policy of Uzbekistan is to render equal opportunity for all its potential consumers, absence of any restriction on the volume of contracting, conditions of supplies and payments. With an aim to decrease possible cost risks at the world market the flexible system of prize fixation is used.
Editor-in-Chief of Cotton Outlook R.Butler, Managing Director of the International Cotton Advisory Committee A.Gitchuns and other respected experts noted that the situation at the cotton market was regularly changing. As a whole, according to forecasts, the decrease of cotton production and foreign trade consuming is expected to decrease globally which is directly related to economic downturn in many countries. But, this process will not affect the need in the Uzbek cotton thanks to its high quality as well as development of textile industry in the world, firstly in the Asian countries.
The geography of supplies of the Uzbek cotton is expanding exactly in this direction, including to China, Republic of Korea, Bangladesh, Iran and other states of this region. In the framework of the international economic cooperation Uzbekistan raised new initiatives on extending mutually beneficial relations with foreign partners.
In this, the changing price for cotton at the cotton market is being considered; the new transport corridors are being worked out; the methods of processing, storing and certification of fiber are being bettered. Thus, thanks to established system of bale-type certification based on the latest technologies, the consumers are guaranteed a quality of each purchased consignment of cotton.
According to unanimous assessments of experts, the fourth International Uzbek Cotton Fair became one of the considerable events of the world cotton community. The participants of the Fair could not only conclude beneficial and timely contracts but also discuss with colleagues and experts from other countries medium-term and long-term prospects of development of world cotton-growing, consumers of its products.
One of main results of the Fair was that the share of immediate producers of goods from Uzbek fiber has noticeably increased among foreign partners. The participation at this international economic forum gave them an opportunity to set direct contacts and sign more beneficial contracts to supplies of cotton first-hand from Uzbekistan.
The delegates to the Fair have underscored a profound efficiency of ongoing economic reforms in Uzbekistan. They visited a cotton processing plant “Yangiyul”, cotton terminal “Toshkent-tola”, as well as “Muruvvat teks” textile company. Besides, they have participated in sessions at the Uzbek Republican Commodity and Raw Exchange, as well as currency platform where the cotton fiber is realized for exports with the use of electronic exchange commerce system.
The successful holding of the fourth International Uzbek Cotton Fair once again confirmed that the status of Uzbekistan as one of the leaders of world cotton business has been on the rise year after year, as much as its role and authority in international economic relations. All of these are the vivid results of policy of large-scale market reforms now underway led by President Islam Karimov. The main goal of reforms is to further consolidate economic power of Uzbekistan and dynamically develop all spheres of life of society.
The Fair has come to an end but the contracting process started during the event is still going on. At the same time, a part of contracts is concluded for the purchase of cotton of forthcoming harvest. This testifies about the confidence of foreign consumers in the fact that Uzbekistan is a reliable partner which guarantees stability of cotton supplies and its excellent quality. Such assessment in the world of business is the highest and it is a concrete result of big reforms now underway in Uzbekistan in all sectors of real economy, including agriculture and cotton processing industry.
City of Tashkent,
October 17, 2008
Press-Service of MFA Republic of Uzbekistan