Historically important, Uzbekistan’s silk sector has seen structural reforms since independence, attracting foreign investment, upgrading production techniques, and expanding production.
Boasting good natural conditions, Uzbekistan has 80 million plants and 51,000 hectares of plantations, producing 26,000 tons of cocoons.
The silk sector has been stunted in recent years by falling demand worldwide and outdated production techniques.
President Shavkat Mirziyoyev signed the Resolution ‘On Measures for Setting up Uzbekipaksanoat’, to offset existing problems and promote the silk industry.
The association will include five regional companies supported by commercial banks and coordinating regional silk-producing businesses.
The document also launched Agropilla, a chain of businesses that will provide high-quality silkworm eggs, upgrade equipment, consult silk-producing businesses, and monitor the production itself.
Uzbekipaksanoat will work with local authorities to support silk production.
The document sets out steps to produce better silkworm eggs and develop silk production as a whole.
The resolution sets up a working group to advise on improvements in production and management.
Silk producing businesses will be offered tax rebates until January 1, 2023.
Individual farmers producing silk will also be exempt from personal income tax.
Individual farmers’ field works will be included in work experience, when calculating retirement benefits.
The benefits will help raise public awareness, get people interested, and open up opportunities for silk producing and processing businesses.
The resolution’s steps will help create a good management system that will boost silk production.
The efforts will increase yearly cocoon yield by 135%, to 35,000 tons, raise cocoon processing cut to 50% by 2021, and create new jobs. (UzReport/Business World Magazine)
