Uzbekistan: Cotton Crop Good
1 October 2007 Domestic cotton prices for the new crop will be set in the beginning of September just before the harvest. The 2006/07 average procurement price for seed cotton (based on grade 2 class 5) equaled $240.76 (USD) per ton, and the average wholesale price for lint procured for state needs was reportedly $1,062.16, according to USDA-FAS. The 2007/08 cotton procurement prices both for seed cotton and lint are expected to rise at least 10% to 15% over last year.
Uzbekistan’s 2007/08 domestic consumption is forecast to increase to 1.15 million bales. The growth in consumption will be fueled by high prices for man-made fiber and yarn, as well as continued expansion in spinning capacity. Industry sources report that by the end of 2007, 20 new textile mills are planned to be opened with a total investment portfolio of $110 million, which should help cotton yarn production increase by 50,000 tons, stockinet by 18,000 tons, fabrics by 5.5 million square meters, and knitted products by 7.7 million pieces.
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