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ORDER OF THE GOVERNMENT OF THE KYRGYZ REPUBLIC

of July 12, 2016 No. 384

About approval of the Concept of development of cotton industry in the Kyrgyz Republic for 2017-2021

For the purpose of recovery and development of cotton industry, the creating favorable conditions promoting increase in production of export-oriented products, program implementation of activities of the Government of the Kyrgyz Republic approved by the resolution of Jogorku Kenesh of the Kyrgyz Republic of April 13, 2016 No. 438-VI according to articles 10 and 17 of the constitutional Law of the Kyrgyz Republic "About the Government of the Kyrgyz Republic" the Government of the Kyrgyz Republic decides:

1. Approve:

- The concept of development of cotton industry in the Kyrgyz Republic for 2017-2021 according to appendix 1;

- The actions plan on implementation of the Concept of development of cotton industry in the Kyrgyz Republic for 2017-2021 (further - the Actions plan) according to appendix 2.

2. To the Ministry of Agriculture, food industry and melioration of the Kyrgyz Republic:

- take measures for ensuring implementation of the Actions plan at the scheduled time;

- perform monitoring and annually, till February 5, provide information on the course of implementation of the Actions plan in Government office of the Kyrgyz Republic.

3. To impose control of execution of this resolution on department of agro-industrial complex and ecology of Government office of the Kyrgyz Republic.

4. This resolution becomes effective after ten days from the date of official publication.

Prime Minister

S. Zheenbekov

Appendix 1

Approved by the Order of the Government of the Kyrgyz Republic of July 12, 2016 No. 384

The concept of development of cotton industry in the Kyrgyz Republic for 2017-2021

1. Current status of cotton industry in the Kyrgyz Republic

§1.1. Cotton growing condition in the Kyrgyz Republic

Cotton growing in the republic is one of export-oriented industries of production. This culture is cultivated generally in the southern regions - the Jalal-Abad, Osh and Batken regions. Hlopkoseyushchy areas are located in the Fergana Valley, at the height of 700-1200 m above sea level, favorable for cultivation of cotton. The ridges surrounding the valley interfere with penetration of air masses from the outside. The amount of effective temperatures (1955-2360 degrees), early approach of spring, hot and droughty summer, and also warm and long fall as much as possible promote cultivation of cotton.

Now development and reforming of cotton growing is followed by emergence of number of the serious and unresolved problems which are slowing down more progressive and effective development of industry. Are among such problems extremely difficult financial and economic situation of most the small hlopkoseyushchy holdings making the main part of seed cotton in the country, insufficient development of systems of the state support and economic regulation of industry. Weak is infrastructure providing participants of the cotton market that reduces stability of reproduction process. In the field of realization there are no organized sales channels of seed cotton and cotton-fiber, their guaranteed sale is not provided, big cross-industry disproportions and disparity of the prices in cotton complex remain.

The existing system of economic regulation, financings and crediting does not promote increase in efficiency of cotton growing and does not provide the necessary level of need for the appropriate credit and other resources. Lack of system of insurance in agricultural industry increases risk of business activity in cotton industry.

Owing to the specificity country farm-production including cotton growing, needs the adequate economic mechanism promoting increase in cost efficiency and competitiveness of industry, overcoming monopolism in allied industries of agro-industrial complex (further - the AIC) and disproportions in their development, realization of necessary countervailing measures in mitigation of the existing disparity of the prices.

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