The cotton consumption of Central Asia is increasing significantly due to political measures which have been taken to control exports in support of value-added use. According to the world exports statistics, they have decreased dramatically per annum since 2015/16 as 2019/20 shipments are projected to be less than half of the region’s exports just four years earlier. With stable production happening in Uzbekistan, Turkmenistan, and Tajikistan are securing greater domestic supplies for inward processing and downstream exports (e.g. cotton yarn, fabric and garments). Uzbekistan banned exports starting this month, Turkmenistan banned exports in 2018/19 and Tajikistan is also following the lead.
Uzbekistan covers the bulk of production and use, with the 2019/20 forecast accounting for more than three-fourths of the region’s total consumption. The government funding and support for cotton ‘clusters’ has motivated all companies to apply a more fully integrated supply chain. The major efforts of government and foreign investment have also been visible in Tajikistan, as the government proposed to establish a full cycle of processing cotton by 2025.
Turkmenistan, the second-largest producer has temporarily embargoed exports in 2018/19 (record low volume) to ensure proper supplies for domestic consumers.
To conclude, Central Asia’s 2019/20 cotton consumption is estimating a record, in contrast to lower consumption expected in China and weak growth in Vietnam. Future growth in Central Asia is expected due to important political goals in the region.