Cotton Likely To Be Sold At 15 Per Cent Discount

According to a source with the Khlopkoprom [Cotton industry] company, Uzbekistan is planning to sell cotton fibre for 15 per cent less than the Liverpool cotton exchange''s price to textile companies with foreign direct investments (FDI).

The cotton fibre however should be used only for production and should not be resold, the source said. The new price will be valid for cotton supplies from the new harvest, the source said.

According to a development programme, approved by the government in 2002, Uzbekistan plans to attract over 1bn dollars in investments in its textile industry until 2005.

The money will be used to build or upgrade 40 cotton processing factories, which is expected to increase cotton fibre processing to 470,000 t a year from 240,000 t.

In 2002 Uzbekistan''s cotton fibre output declined 0.7 per cent on the year to 1.007m tonnes.