Silk: Uzbekistan wants more Belgian investment

The Association of Uzbekipaksanot was in Belgium in order to attract Belgian investors in the field of silk.

Sericulture has been carried on in Uzbekistan since ancient times. There is information on the existence of sericulture and silk-weaving on the territory of this Republic 3000 years ago in the Fergana valley, on sources of the Zarafshan river, and also in the south.

For 1500 years the Great Silk Road existed from western China to Europe, going through the countries of all Asia and including the territory of modern Uzbekistan, especially ancient cities like Samarkand and Bukhara. In Central Asia, especially on the line of the Great Silk Road – Samarkand, Shahrisabz, Bukhara and Fergana valley there was widely advanced sericulture, silk-reeling and silk-weaving with the application of gold embroidery elements.

Today, Uzbekistan is the third largest manufacturer of silk in the world after China and India and remains the first manufacturer in the world considering per capita production of silk.

Sericulture is an important industry in Uzbekistan because this is a labor-intensive industry operating in all regions of Uzbekistan and it is generous enough providing job opportunities and livelihood for more than half a million people (about 1,5 % of total population of the country), particularly in rural areas.        

To improve the situation and to use the existing high potential of silk sector in Uzbekistan for income generation, jobs creation and boosting exports, in accordance with the Decree of the President of the Republic of Uzbekistan dated on March 29, 2017, the Silk Industry Association of “Uzbekipaksanoat” was established. 

By this Decree, tax benefits and other privileges are granted to enterprises and organizations engaged in cocoons growing and silk producing in Uzbekistan until 2023. For instance, home-based workers who are engaged in the production of live cocoons are exempted from income taxes as well.

Bakhrom Sharipov, Chairman of the Association of Uzbekipaksanot was in Belgium in order to attract Belgian investors and brand Uzbekistan as the place to invest in this sector. Uzbekipaksanoat is currently establishing mutually beneficial cooperation with international organizations like FAO, UNIDO, OFID and leading European silk companies.