PRESIDENTIAL DECREE OF THE REPUBLIC OF UZBEKISTAN

of January 17, 2025 No. UP-7

About measures for consecutive continuation of application of market mechanisms in case of cultivation and realization of cotton raw

For the purpose of adaptation of financing of system of cultivation and realization of cotton raw to market mechanisms, optimization of cost of cotton, removal of realization of cotton raw through the exchange biddings on new level, and also increases in material interest of farms and processors:

1. Determine that since harvest of cotton of 2025:

The Uzbek republican commodity and raw exchange (further - the Exchange) on November 1 calendar year (on February 1 - for harvest of 2025) proceeding from the average quotation of cotton fiber for the last 6 months of future quotations at the New York exchange determines the starting price (the first grade, second class) of cotton raw for harvest of the next year which announces on the official website of the Exchange;

irrespective of pattern of ownership between all farms on cotton raw production (further - farms) and clusters, and also the textile companies having chain of conversion of cotton raw and production of yarn (further - processors), purchase and sale agreements (future, forward and spot) on cotton raw supply (further - agreements) are signed at the auction held separately on each region (The Republic of Karakalpakstan or the respective area) on section of cotton raw of the Exchange;

the agreements signed between farms and processors are drawn up through the exchange auction held on the basis of the free choice of the parties by independent election of delivery dates as farms, and also one or several buyers;

all agreements at the Exchange are signed between farms and processors who are present at the database integrated with Agroportal.

2. Establish procedure according to which since harvest of cotton of 2025:

a) future agreements are signed between farms and processors from November 1 of calendar year to June 1 of the next year at the price which is freely created at the exchange, but not below the announced starting price.

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