Kazakh Government recently received proposals from the Turkestan region to prevent a crisis in the cotton industry in this region, the main producer of raw cotton and its products in the country. The proposals recommend the creation of a multi-sectoral cotton cluster with the participation of partner countries in the EAEU, Ritmeurasia reports.
The situation in this industry of the Turkestan region by the end of this year became critical due to low purchase prices in the Republic of Kazakhstan for these products and due to insufficient irrigation of "white gold" crops due to a long drought in this region.
The current situation was discussed during an extended meeting in the akimat (administration) of the region with the participation of representatives of industry enterprises, the Majlis, the ministries of agriculture, trade and integration, and foreign affairs. It was noted that 187 raw material reception points and 22 cotton processing plants operate in this area, but most of them may stop working due to the mentioned factors.
Among the recommendations addressed to the Government of the Republic of Kazakhstan are the reduction of railway tariffs for the transportation of cotton and cotton products within the country and for export; increase in state funding for measures to introduce innovations in the irrigation system of cotton fields.
And as a priority task, according to the recommendations of the meeting, the Investment Committee of the Ministry of Foreign Affairs and the Ministry of Agriculture were invited to consider “together with the embassies in Kazakhstan of the countries importing Kazakh cotton fiber, the issues of attracting investors for the development of the cotton cluster in Turkestan.” It was clarified that the embassies of Russia, Belarus, Turkey and 7 other countries - the main importers of these Kazakh products are meant.
A number of experts consider this initiative promising, first of all, for the Russian textile and light industry due to the shortage of raw cotton and its semi-finished products in this sector of the Russian Federation that arose in the middle of this year. In this regard, a corresponding appeal from the Russian SOYUZLEGPROM was sent to the Russian Ministry of Industry and Trade.
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Nov. 7, 2022