DUSHANBE: Tajik-Korean Kabool-Tajik-Textiles JV interrupted its functioning in Khujand, because of lint cotton prices, Deputy Industrial Ministry of Tajikistan Abdukarim Khikmatov said here on May 19.
According to the Tajikistani Industry Ministry, several other textile plants are going to stop its production because of the price growth and textile production becomes unprofitable under such stuff price in Tajikistan.
Deputy Industrial Ministry of Tajikistan further said that the lint cotton price for domestic producers was increased in accordance with joint decision of Economy and Trade Ministry, Agricultural Ministry, and State anti-Monopoly Committee of Tajikistan.
He also pointed out that the domestic producers are driven into unfavorable situation comparing with lint cotton exporters from Tajikistan as textile plants have to buy 1 ton of raw cotton for $ 108 more than exporters now which earlier was available for $ 948 per ton.
However the deputy minister stressed that he hardly understands logic of the decision, supposing that it was allegedly done to settle debt problem of cotton-growing farms with foreign investors.
Further the whole Tajikistan textile industry can stop as domestic production will be noncompetitive with such prices at world markets. On the other hand, only 12.4 percent of the whole cotton-wool is processed in the country.
Khikmatov also stressed that although Tajikistan has considerable capacities; farms are not able to process bigger amounts of cotton-wool because of lack of turnover means, which may be received only through foreign investments.