Voluntary Report - public distribution

**Date:** 11/2/2004

**GAIN Report Number:** UZ4008

UZ4008

**Uzbekistan, Republic of**

**Cotton and Products**

**Cotton Update**

**2004**

**Approved by:**

![](media/image1.wmf)Robert Hanson, Acting Agricultural Counselor

U.S. Embassy

**Prepared by:**

Nizam Yuldashbaev, Agricultural Specialist

**Report Highlights:**

Uzbekistan\'s MY 2004/05 cotton harvest is coming to an end. As of
October 27, 2004, Uzbek farmers harvested 3.4 MMT of seed cotton. Based
on this forecast seed cotton production increase, lint production and
exports are forecast at 1.14 MMT and 850,000 MT accordingly.

Includes PSD Changes: Yes

Includes Trade Matrix: No

Unscheduled Report

Ankara \[TU1\]

\[UZ\]

#  

[PRODUCTION 3](#production)

[Table 1. Production target of seed cotton and the actual harvest in
tonnage and percentage by regions
3](#table-1.-production-target-of-seed-cotton-and-the-actual-harvest-in-tonnage-and-percentage-by-regions)

[Table 2: Production Supply and Distribution
4](#table-2-production-supply-and-distribution)

[DOMESTIC AND EXPORT PRICES 4](#domestic-and-export-prices)

[Table 3. Procurement prices for cotton lint
4](#table-3.-procurement-prices-for-cotton-lint)

[Table 4. Procurement prices for seed cotton.
5](#table-4.-procurement-prices-for-seed-cotton.)

[TRADE 5](#trade)

#   {#section-1 .unnumbered}

# PRODUCTION

Uzbekistan's MY 04/05 cotton harvest is coming to an end. As of October
27, 2004 Uzbek farmers harvested 3.4 MMT of seed cotton in total, which
is over 25 percent more than it was at the same period last year. This
year's favorable weather conditions during the vegetation period and
harvesting in September and October considerably benefited the crop
condition and allowed the farmers to harvest 94 percent of targeted seed
cotton volume. Currently, most independent experts believe that this
year Uzbekistan may be very close to achieving its production target of
3.6 MMT in seed cotton. Based on increased seed cotton production Post
forecasts an increase in Uzbekistan's MY 04/05 lint production to 1.14
MMT.

## Table 1. Production target of seed cotton and the actual harvest in tonnage and percentage by regions 

  --------------------- ----------------- ------------------ --------------
  Regions               Target            Actual harvest     

                                          In tons            In percentage

  Karakalpak Republic   176000            179572             102.03

  Andijan Region        310000            308749             99.60

  Bukhara Region        360000            375436             104.29

  Djizzakh Region       230000            230267             100.12

  Kashkadarya Region    410000            448610             109.42

  Navoi Region          110000            114123             103.75

  Namangan Region       270000            241205             88.75

  Samarkand Region      235000            233429             99.33

  Surkhandarya Region   345000            323952             93.90

  Syrdarya Region       264000            184086             69.73

  Tashkent Region       275000            235679             85.63

  Fergana Region        340000            244379             71.88

  Khorezm Region        275000            280711             102.08

  Total in Uzbekistan   3600000           3400200            94.45

  In 2003 for the same  3600000           2380608            66.13
  period                                                     

  Including long staple                                      
  cotton                                                     

  Kashkadarya Region    \-                6057               \-

  Namangan region       \-                487                \-

  Surkhandarya Region   \-                30072              \-

  Total in Uzbekistan   \-                36616              \-

  In 2003 for the same  \-                46748              \-
  period                                                     
  --------------------- ----------------- ------------------ --------------

## Table 2: Production Supply and Distribution

###### 

# 

![](media/image2.wmf)

# 

# DOMESTIC AND EXPORT PRICES

###### In the beginning of September just before the harvest, the Ministry of Finance established the procurement prices for seed cotton as well as lint. The current average procurement price for seed cotton (based on grade 2 class 5) equals Sums 225,000 per ton, and the average wholesale price for lint procured for state needs is Sums 1.022 million.

(The official exchange rate -- Sums 1045 = USD 1.00)

The current export price for Uzbek cotton is about USD 1150 (CIF) per
ton based on the quotation of Index "A" of the Liverpool Cotton
Exchange. However, as in the past, Uzbek exporters, using USD 75 per ton
discount from that price, set the final export price, and the lint is
sold on FOB basis. Below are the tables with detailed procurement prices
by grade for seed cotton and lint:

## Table 3. Procurement prices for cotton lint

<table>
<colgroup>
<col style="width: 4%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="2" rowspan="4"><p>Industrial</p>
<p>Grades and Class</p>
<p>Of seed cotton</p></td>
<td colspan="9">Types/codes of cotton lint</td>
</tr>
<tr class="even">
<td colspan="5">Long Staple grades</td>
<td colspan="4">Medium Staple grades</td>
</tr>
<tr class="odd">
<td>1a</td>
<td>1b</td>
<td>1</td>
<td>2</td>
<td>3</td>
<td>4</td>
<td colspan="2">5</td>
<td>6</td>
</tr>
<tr class="even">
<td>43</td>
<td>42</td>
<td>41</td>
<td>40</td>
<td>39-38</td>
<td>37-36</td>
<td>35</td>
<td>34</td>
<td>33</td>
</tr>
<tr class="odd">
<td rowspan="5">I</td>
<td>supreme</td>
<td>1357420</td>
<td>1323060</td>
<td>1288690</td>
<td>1254330</td>
<td>1193110</td>
<td>1088620</td>
<td>1073910</td>
<td>1059950</td>
<td>1047060</td>
</tr>
<tr class="even">
<td>Good</td>
<td>1344490</td>
<td>1310450</td>
<td>1276420</td>
<td>1242380</td>
<td>1181750</td>
<td>1078250</td>
<td>1063680</td>
<td>1049850</td>
<td>1037090</td>
</tr>
<tr class="odd">
<td>Average</td>
<td>1292780</td>
<td>1260050</td>
<td>1227320</td>
<td>1194600</td>
<td>1136300</td>
<td>1036780</td>
<td>1022770</td>
<td>1009470</td>
<td>997200</td>
</tr>
<tr class="even">
<td>Ordinary</td>
<td>1247530</td>
<td>1215950</td>
<td>1184370</td>
<td>1152780</td>
<td>1096530</td>
<td>1000490</td>
<td>986970</td>
<td>974140</td>
<td>962300</td>
</tr>
<tr class="odd">
<td>Mixed</td>
<td>1195820</td>
<td>1165550</td>
<td>1135270</td>
<td>1105000</td>
<td>1051080</td>
<td>959020</td>
<td>946060</td>
<td>933760</td>
<td>922410</td>
</tr>
<tr class="even">
<td rowspan="5">II</td>
<td>Supreme</td>
<td>1318640</td>
<td>1285250</td>
<td>1251870</td>
<td>1218490</td>
<td>1159020</td>
<td>1057520</td>
<td>1043230</td>
<td>1029660</td>
<td>1017140</td>
</tr>
<tr class="odd">
<td>Good</td>
<td>1291490</td>
<td>1258790</td>
<td>1226100</td>
<td>1193400</td>
<td>1135160</td>
<td>1035750</td>
<td>1021750</td>
<td>1008460</td>
<td>996200</td>
</tr>
<tr class="even">
<td>Average</td>
<td>1234610</td>
<td>1203350</td>
<td>1172090</td>
<td>1140840</td>
<td>1085160</td>
<td>990130</td>
<td>976750</td>
<td>964050</td>
<td>952330</td>
</tr>
<tr class="odd">
<td>Ordinary</td>
<td>1189360</td>
<td>1159250</td>
<td>1129140</td>
<td>1099030</td>
<td>1045390</td>
<td>953840</td>
<td>940950</td>
<td>928720</td>
<td>917420</td>
</tr>
<tr class="even">
<td>Mixed</td>
<td>1137650</td>
<td>1108850</td>
<td>1080050</td>
<td>1051240</td>
<td>999940</td>
<td>912370</td>
<td>900040</td>
<td>888340</td>
<td>877540</td>
</tr>
<tr class="odd">
<td rowspan="4">III</td>
<td>Good</td>
<td>1247530</td>
<td>1215950</td>
<td>1184370</td>
<td>1152780</td>
<td>1096530</td>
<td>1000490</td>
<td>986970</td>
<td>974140</td>
<td>962300</td>
</tr>
<tr class="even">
<td>Average</td>
<td>1202290</td>
<td>1171850</td>
<td>1141410</td>
<td>1110970</td>
<td>1056760</td>
<td>964210</td>
<td>951180</td>
<td>938810</td>
<td>927400</td>
</tr>
<tr class="odd">
<td>Ordinary</td>
<td>1144110</td>
<td>1115150</td>
<td>1086180</td>
<td>1057220</td>
<td>1005620</td>
<td>917550</td>
<td>905150</td>
<td>893380</td>
<td>882520</td>
</tr>
<tr class="even">
<td>Mixed</td>
<td>1085940</td>
<td>1058440</td>
<td>1030950</td>
<td>1003460</td>
<td>954490</td>
<td>870900</td>
<td>859130</td>
<td>847960</td>
<td>837650</td>
</tr>
<tr class="odd">
<td rowspan="4">IV</td>
<td>Good</td>
<td>1098860</td>
<td>1071040</td>
<td>1043230</td>
<td>1015410</td>
<td>965850</td>
<td>881260</td>
<td>869350</td>
<td>858050</td>
<td>847620</td>
</tr>
<tr class="even">
<td>Average</td>
<td>1034230</td>
<td>1008040</td>
<td>981860</td>
<td>955680</td>
<td>909040</td>
<td>829430</td>
<td>818220</td>
<td>807580</td>
<td>797760</td>
</tr>
<tr class="odd">
<td>Ordinary</td>
<td>969590</td>
<td>945040</td>
<td>920490</td>
<td>895950</td>
<td>852220</td>
<td>777590</td>
<td>767080</td>
<td>757110</td>
<td>747900</td>
</tr>
<tr class="even">
<td>Mixed</td>
<td>904950</td>
<td>882040</td>
<td>859130</td>
<td>836220</td>
<td>795410</td>
<td>725750</td>
<td>715940</td>
<td>706630</td>
<td>698040</td>
</tr>
<tr class="odd">
<td rowspan="3">V</td>
<td>Average</td>
<td>711030</td>
<td>693030</td>
<td>675030</td>
<td>657030</td>
<td>624960</td>
<td>570230</td>
<td>562520</td>
<td>555210</td>
<td>548460</td>
</tr>
<tr class="even">
<td>Ordinary</td>
<td>646390</td>
<td>630030</td>
<td>613660</td>
<td>597300</td>
<td>568150</td>
<td>518390</td>
<td>511380</td>
<td>504740</td>
<td>498600</td>
</tr>
<tr class="odd">
<td>Mixed</td>
<td>581750</td>
<td>576020</td>
<td>552300</td>
<td>537570</td>
<td>511330</td>
<td>466550</td>
<td>460250</td>
<td>454260</td>
<td>448740</td>
</tr>
</tbody>
</table>

## Table 4. Procurement prices for seed cotton.

<table>
<colgroup>
<col style="width: 4%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 9%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="2" rowspan="4"><p>Industrial</p>
<p>Grades and Class</p>
<p>Of seed cotton</p></td>
<td colspan="9">Types/codes of cotton lint</td>
</tr>
<tr class="even">
<td colspan="5">Long Staple grades</td>
<td colspan="4">Medium Staple grades</td>
</tr>
<tr class="odd">
<td>1a</td>
<td>1b</td>
<td>1</td>
<td>2</td>
<td>3</td>
<td>4</td>
<td colspan="2">5</td>
<td>6</td>
</tr>
<tr class="even">
<td>43</td>
<td>42</td>
<td>41</td>
<td>40</td>
<td>39-38</td>
<td>37-36</td>
<td>35</td>
<td>34</td>
<td>33</td>
</tr>
<tr class="odd">
<td rowspan="3">I</td>
<td>1 class</td>
<td>329050</td>
<td>320720</td>
<td>312390</td>
<td>304060</td>
<td>289220</td>
<td>263890</td>
<td>260330</td>
<td>256940</td>
<td>253820</td>
</tr>
<tr class="even">
<td>2 class</td>
<td>320520</td>
<td>312400</td>
<td>304290</td>
<td>296180</td>
<td>281720</td>
<td>257050</td>
<td>253580</td>
<td>250280</td>
<td>247240</td>
</tr>
<tr class="odd">
<td>3 class</td>
<td>256530</td>
<td>250030</td>
<td>243540</td>
<td>237050</td>
<td>225480</td>
<td>205730</td>
<td>202950</td>
<td>200310</td>
<td>197880</td>
</tr>
<tr class="even">
<td rowspan="3">II</td>
<td>1 class</td>
<td>284400</td>
<td>277200</td>
<td>270000</td>
<td>262800</td>
<td>249980</td>
<td>228080</td>
<td>225000</td>
<td>222080</td>
<td>219380</td>
</tr>
<tr class="odd">
<td>2 class</td>
<td>275870</td>
<td>268880</td>
<td>261900</td>
<td>254920</td>
<td>242480</td>
<td>221240</td>
<td>218250</td>
<td>215410</td>
<td>212790</td>
</tr>
<tr class="even">
<td>3 class</td>
<td>253680</td>
<td>247260</td>
<td>240840</td>
<td>234420</td>
<td>222980</td>
<td>203450</td>
<td>203700</td>
<td>198090</td>
<td>195680</td>
</tr>
<tr class="odd">
<td rowspan="3">III</td>
<td>1 class</td>
<td>263350</td>
<td>256690</td>
<td>250020</td>
<td>243350</td>
<td>231480</td>
<td>211200</td>
<td>208350</td>
<td>205640</td>
<td>203140</td>
</tr>
<tr class="even">
<td>2 class</td>
<td>234350</td>
<td>228410</td>
<td>222480</td>
<td>216550</td>
<td>205980</td>
<td>187940</td>
<td>185400</td>
<td>182990</td>
<td>180760</td>
</tr>
<tr class="odd">
<td>3 class</td>
<td>165810</td>
<td>161610</td>
<td>157410</td>
<td>153210</td>
<td>145740</td>
<td>132970</td>
<td>131180</td>
<td>129470</td>
<td>127900</td>
</tr>
<tr class="even">
<td rowspan="3">IV</td>
<td>1 class</td>
<td>196240</td>
<td>191270</td>
<td>186300</td>
<td>181330</td>
<td>172480</td>
<td>157380</td>
<td>155250</td>
<td>153230</td>
<td>151370</td>
</tr>
<tr class="odd">
<td>2 class</td>
<td>152150</td>
<td>148300</td>
<td>144450</td>
<td>140600</td>
<td>133740</td>
<td>122020</td>
<td>120380</td>
<td>118810</td>
<td>117370</td>
</tr>
<tr class="even">
<td>3 class</td>
<td>116320</td>
<td>113380</td>
<td>110430</td>
<td>107490</td>
<td>102240</td>
<td>93290</td>
<td>92030</td>
<td>90830</td>
<td>89720</td>
</tr>
<tr class="odd">
<td>V</td>
<td>3 class</td>
<td>81620</td>
<td>79560</td>
<td>77490</td>
<td>75420</td>
<td>71740</td>
<td>65460</td>
<td>64580</td>
<td>63740</td>
<td>62960</td>
</tr>
</tbody>
</table>

# TRADE

There are not any major changes in the pattern of lint exports. Some
well-known cotton traders are reportedly being cautious and reluctant to
buy large quantities of Uzbek cotton because of a small discount given
by Uzbek exporters. While the price for Uzbek cotton declined
considerably over the past year, still it is somewhat more expensive
than similar quality African or other origin cotton. In spite of this
situation, many small trading companies are buying Uzbek cotton at
exporters' terms.