Business news

11 Oct 2022

Belarus looks into ways to invest in cotton production in Tajikistan

An archive photo

DUSHANBE, 11 October (BelTA) - Belarus is studying the possibility of investing in cotton production in Tajikistan, Tatiana Lugina, head of the Belarusian light industry concern Bellegprom, told the media on the sidelines of the Tajik-Belarusian business forum in Dushanbe on 11 October, BelTA has learned.

According to Tatiana Lugina, heads of Orsha Linen Mill and Baranovichi Production Cotton Association are among those who have come to attend the business forum. They are negotiating the possible import of cotton yarn and fiber.

“The export of this raw material worldwide decreases every year and its volumes are falling,” the Bellegprom head said.

Direct participation in the processing of cotton in the country where this fiber is cultivated is one of the ways to reduce the cost of the final product. Belarus is studying the possibility of cooperation with Tajikistan in this area. “This topic was also touched upon: as to what extent can we economically cooperate with Tajikistan in processing cotton into yarn. Who has such enterprises in Central Asia, those win 8-10% in price. We are still studying the conditions. Each market offers its own conditions of entry. It takes time to work out the expediency of entering one country or another. We are working on it,” Tatiana Lugina stressed.

Belarus also buys cotton yarn in Kazakhstan, Uzbekistan, and Turkiye. In Tajikistan, the price has been most acceptable to Belarusian producers in recent years.

Cotton is not the only interest in cooperation in the light industry, said Tatiana Lugina. This year, the Belarusian company Mogotex has exported its products to Tajikistan for the first time. It exported technical fabrics worth $250,000. The Mogilev company agreed on exports to Tajikistan in 2023 as well. According to preliminary information, Mogotex is set to supply technical fabrics to the total tune of $300,000.

Vitebsk Carpets Holding Company will also be represented in Tajikistan. Together with partners they are establishing a joint production there. This type of products is especially popular in Tajikistan.

According to the Belarusian Chamber of Commerce and Industry, some 73 Belarusian companies have arrived in Dushanbe for the business forum. Almost half of them have displayed their products at the Made in Belarus exhibition. “On display are almost all sectors of the economy: machine building, metallurgy, food, woodworking, and light industry,” Mikhail Myatlikov, Chairman of the Belarusian Chamber of Commerce and Industry, said.

The total amount of the contracts concluded at the business forum almost reached $46 million. Another $2 million worth of agreements were concluded during the online negotiations.