August 13, 2010

Politics:
On the situation with regard to transit of railcars bound for the Republic of Tajikistan through the territory of the Republic of Uzbekistan

Economics:
Kungrad Soda Plant to be pick up productive capacity
Cotton production to rebound 14% in 2010/11

Society:
Over 16 million people participate in nationwide charitable hashar


POLICY

On the situation with regard to transit of railcars bound for the Republic of Tajikistan through the territory of the Republic of Uzbekistan

Despite the measures taken by “Uzbekistan temir yullari” (“Uzbekistan Railways”) State Joint-Stock Company on arranging the transit of freights bound to Tajikistan in a timely manner, Tajik officials and some mass media outlets are continuing to disseminate groundless statements and false accusations against Uzbekistan on withholdings the freights and causing unjustified delays of railcars on its territory.

Transit of freights bound to Dushanbe and Sogd areas of Tajikistan through Kudukli and Bekabad railway stations on the Uzbek-Tajik border is carried out in a timely manner and without any delays.

Despite the need to undertake repair works on reconstruction of line superstructure and artificial facilities on Termez – Amuzang area brought about by abundant precipitation and mudflow streams, the necessary measures have been taken aimed at effective tackling the issues in terms of letting pass the railcars with destination up to Southern regions of Tajikistan and such measures are being continued by “Uzbekistan temir yullari” State Joint-Stock Company.

During reconstruction period, thanks to the efforts of “Uzbekistan temir yullari” State Joint-Stock Company 1337 railcars, including 322 railcars with food cargo, 607 railcars with combustive-lubricating materials, 261 – construction materials and 147 railcars with other cargo have been transferred through Amuzang border railway station to Tajikistan.

It should be noted that the volumes of transit freight trafficking to the Republic of Tajikistan increased by 2.7 percent in May 2010 in comparison with the same period of 2009, i.e. 220 tons more goods are being transferred to Tajikistan through Uzbek railways daily.

The facts show that Uzbekistan took and is continuing to take all necessary measures to ensure free flow of transit freights bound for Tajikistan through its territory. At that, Uzbekistan meets in full its commitments on fright transit despite objective difficulties, emerging on some areas of the railroad in terms of their maintenance, servicing, repair and reconstruction.

Such groundless statements and charges by the representatives of Tajikistan directed against Uzbekistan undermine the base of good neighborly and partnership relations between two countries and do not promote consolidation of mutual trust between two sides.

Kungrad Soda Plant to be pick up productive capacity

For past four years only in Central Asia factory manufactured calcined soda – the competitive product of high quality. Kungrad soda plant supplied more and more production not only to home market, but also to export, having clear extensive opportunities for social and economic development of southern Ustyrt.

There was produced calcined soda of 12.810 tons in 2006. On the outcomes of past year Kungrad soda plant has manufactured such product amounted of 76.762 tons. Steady rising volume and quality of product enable the factory to ensure consumers inland and abroad. There are leading industrial enterprises of CIS and Baltic countries. Foreign partners have purchased more than 30.000 ton calcined soda in 2009.

Producing of calcined soda is a technologically complicated, power-consuming process and requires high quality of staff.

On purpose to fill up with qualified personnel according to Resolution of the President of the Republic of Uzbekistan “on organizing principal personnel development for Kungrad soda plant”, issued on April 13, 2005 the correspondence branch of Tashkent chemical engineering institute has been established on the ground of factory. More than 220 new specialists have been graduated since 2006 and 80 of them completed study last year. Now over 200 students attended there. One must not, that more than 1.250 person work at plant and most of them are young people under thirteen.

ECONOMY

Cotton production to rebound 14% in 2010/11

World cotton production in 2010/11 is forecast to rebound 14% to 116.9 million bales, a significant recovery from the output slide observed in the previous year. The bulk of the production gain is expected to come from Australia, Brazil, China, the United States, and Uzbekistan.

Australia's production in 2010/11 is forecast at 2.3 million bales, up 44% from the previous year and the highest production in past five years.

Australia's crop, which is mostly irrigated, has experienced considerable gains in the last couple of years as the return of more typical levels of precipitation has substantially improved the availability of water for irrigation there.

Cotton area in Australia is expected to increase 30% to 260,000 hectares in 2010/11, while yield is forecast at 1,926 kg/ha. Australia has the highest cotton yield in the world, according to the US Department of Agriculture (USDA).

Brazil's 2010/11 production is forecast at 7 million bales, up 31% from a year earlier, and equivalent to the second highest production on record. Like other major cotton countries, Brazil is expected to expand area to take advantage of the high global price of the fiber.

For 2010/11, cotton area in Brazil is forecast to rise 20% from the previous year to 1 million hectares, comparable to the area harvested in the period leading up to the global financial crisis in 2008. Brazil's largest cotton producing states, Mato Grosso and Bahia, are expected to account for at least 80% of the 2010/11 crop.

China's 2010/11 production is forecast at 33 million bales, up 1.5% from the previous year. Cotton area in China in 2010/11 is expected to rise 2% from the previous year, while yield is forecast at 1,331 kg/ha, similar to previous year's yield.

In the United States, 2010/11production is forecast to rebound 52% from a year earlier, as producers increased area in response to the high market price of cotton. The US cotton area is forecast at 4.3 million hectares, up 41% from the previous year.

In Uzbekistan, the 2010/11 crop is expected to increase 20% from a year ago to 4.8 million bales, resulting entirely from yield gains. While Uzbek's 2010/11 cotton area is not expected to change from the 1.3 million hectares harvested a year earlier, yield is expected to increase 20% to 804 kg/ha in 2010/11.

Global 2010/11 cotton area is forecast at 33 million hectares, up 9% from a year ago and the highest area to be harvested in past four years. World cotton yield is expected to improve 5% to 771 kg/ha.

World cotton trade to surge in 2010/11

Global cotton trade in 2010/11 is forecast at 38.2 million bales, up 7% from a year ago. The United States is expected to account for the bulk of the 2010/11 trade rebound, as the world's leading exporter is anticipated to export 15 million bales.

Shipments by other major exporters, such as Australia and Brazil, are expected to decline 5% and 4.5% in 2010/11to 2 million and 1.9 million bales, respectively. In India, exports are forecast to decrease by 50,000 bales from the previous year to 6.5 million bales, while in Uzbekistan, 2010/11 exports are forecast to remain unchanged at 3.8 million bales.

China is forecast to import 12.5 million bales in 2010/11, up 14% from the preceding year and the highest import to be seen in 4 years. Bangladesh's 2010/11 imports are forecast to increase 6% from the previous year to 4.25 million bales, while Indonesia's imports are expected to rise 5% to 2.2 million bales.

Turkey is expected to import 3.4 million bales in 2010/11, down 21% from a year earlier, and Turkey will once again rank behind Bangladesh as the third largest cotton importer globally. The biggest percentage rebound is expected in Pakistan, where 2010/11 imports are forecast at 2.3 million bales, a 53% increase from the preceding year.

World consumption to make a slight recovery in 2010/11

Global cotton mill use in 2010/11 is forecast at 12.1 million bales, up 2.7% from the previous year. This improvement in world cotton consumption mirrors the most recent International Monetary Fund's (IMF) expectation for mixed economic prospects, highlighted in the July 2010 edition of the World Economic Outlook.

According to the IMF report, the global economy is expected to grow at 4.6% in 2010 and then 4.3% in 2011. Unlike the developing countries, where growth prospects are relatively better, advanced economies face a slow path to recovery in the year ahead.

China, the world's leading mill user is forecast to consume 50 million bales in 2010/11, up 3% from the previous year. India's mill use in 2010/11 is forecast to increase 4% to 20.4 million bales, while Turkey is expected to consume 6 million bales, up 3% from a year earlier. Brazil is expected to consume 4.6 million bales, up 4.5% from the previous year. In Pakistan, the 2010/11 mill use is projected at 11.5 million bales, unchanged from the previous year.

Global stocks to decline in 2010/11

Global ending stocks in 2010/11 are forecast at 45.6 million bales, down 4% from a year earlier and the lowest in 13 years. Meanwhile, the projected stocks-to use ratio of 38% is 2% below 2009/10 and the lowest since a similar ratio was recorded in 1994/95.

The forecast decline in global cotton ending stocks and the stocks-to-use ratio is expected to put further upward pressure on the world price of the fiber, and the Cotlook A-index is expected to rise accordingly in 2010/11 to its highest in recent years.


SOCIETY

Over 16 million people participate in nationwide charitable hashar

More than 16 million people participated in the nationwide charitable hashar held in Uzbekistan over the past weekend.

The hashar participants cut and whitewashed over 14 million trees, beautified more than 30,000 hectares of lands and cleaned 22,000 km of irrigation systems.

In the framework of the Obod Vatanim project of Kamolot youth movement wide-scale work to clean sacred and worship places was held.

During the hashar days, new objects were commissioned across the country, including new houses for young families, schools and sports objects.

The funds received during the weekend will be used for supporting low-income families and the disabled, repairs of sports grounds and other objects, UzA reported.