Mr. Bakhtiyor IBRAGIMOVMr. Bakhtiyor IBRAGIMOV

““Uzbek Cotton - Key Factor in theUzbek Cotton - Key Factor in theDevelopment of Bangladesh's Textile Development of Bangladesh's Textile

Industry”Industry”April 23, 2007, DhakaApril 23, 2007, Dhaka

Summary:Summary:

Uzbekistan Cotton Industry

Uzbekistan Cotton Trading System

Uzbek Cotton & Bangladesh Textile

Uzbekistan in the World Cotton ProductionUzbekistan in the World Cotton Production

China28%

India18%Pakistan

8%

Others18%

USA19%

Brazil5%

Uzbekistan4%

Uzbekistan in the World Cotton ExportsUzbekistan in the World Cotton Exports

USA35%

India11%

Australia6%

Others32%

Uzbekistan12%

Brazil4%

Quality of Uzbek Cotton’s Selected GradesQuality of Uzbek Cotton’s Selected Grades MIC STAPLE UHML STR UI RD bunit 32/ inch inch*100 gf/ tex % % %

Akdarya 5 4,5 35,8 112,4 28,8 82,4 80,6 8,2Akdarya 6 4,4 35,6 111,9 29,9 82,9 79,9 8,6

Akkurgan 2 4,5 35,8 112,5 29,9 82,9 78,7 8,2An-Bayaut 2 4,5 35,2 110,6 29,6 82,4 79,1 8,8Andijan 35 4,6 35,0 109,9 30,9 83,2 79,3 9,1

At-Termeziy 4,8 35,8 112,3 31,3 83,0 78,8 8,7Buxara 102 4,3 35,9 112,6 31,7 83,5 79,6 8,8Buxara 6 4,4 36,0 113,1 31,7 83,5 80,5 9,0Buxara 8 4,4 36,0 113,0 31,7 83,7 80,3 9,0Denau 4,6 35,3 110,8 30,1 83,1 78,2 8,9Karshi 1 4,2 40,6 118,9 32,8 83,6 69,4 12,1Mexnat 4,6 35,4 111,3 30,6 83,1 80,5 8,7

Namangan 77 4,6 35,3 110,8 30,8 83,3 79,5 8,7Omad 4,5 36,5 114,7 30,4 83,5 78,8 8,4S 4727 4,7 34,8 109,4 30,8 82,8 80,0 8,6S 6524 4,3 35,9 112,5 32,1 83,4 78,3 8,4

Surxan 9 4,3 44,5 130,7 37,6 85,3 72,2 11,0Tashkent 6 4,3 35,3 110,0 30,4 82,3 77,6 8,7Termez 31 4,6 41,4 122,4 38,3 85,1 72,9 10,7

Fan 1 5,2 35,0 109,9 28,2 82,8 77,9 9,5Xorezm 127 4,6 35,9 112,7 31,4 83,2 80,7 8,4Xorezm 150 4,6 35,1 110,2 29,3 82,5 80,0 9,0

Variety

• 129 cotton gins

Cotton GinsCotton Gins

• 60 gins reconstructed

Karakalpakstan

KhorezmNavoi

BukharaSamarkand

Kashkadarya

Surkhandarya

Jizzakh Sirdarya

TashkentNamangan

FerganaAndijan

Quality of Uzbek CottonQuality of Uzbek Cotton

Crop White Light Spotted Spotted Tinged Yellow

Stained2004 60,4 23,1 5,6 4,7 6,32005 71,0 18,5 3,8 3,9 2,7

2006 71,0 20,5 4,0 3,0 1,6

CropGood

MiddlingStrict

Middling MiddlingStrict Low

Middling

Low Middling

2004 16,7 44,3 26,3 10,7 2,02005 18,3 49,2 24,7 6,9 0,82006 19,3 64,5 14,2 1,6 0,2

by Grades

by Classes

1.0% 16.31%

82.69%

0.23%0.25%

99.52%

3.4 and higher Basis 3.5-4.9 5.0 and higher

Uzbek Cotton’s Micronaire Improvement (2000 vs 2005)Uzbek Cotton’s Micronaire Improvement (2000 vs 2005)

Export Destinations for Uzbek Cotton in 2001Export Destinations for Uzbek Cotton in 2001//0202

Asia15%

CIS23%

Europe62%

Export Destinations for Uzbek Cotton in 2005/06Export Destinations for Uzbek Cotton in 2005/06

CIS10%

Europe20%

Asia70%

Uzbekistan Cotton Trading SystemUzbekistan Cotton Trading System

Ministry for Foreign Economic Relations,Investments and Trade

UzMarkazImpexUzPrommashImpex UzInterImpex

UzVneshTrans

Transparent Pricing PolicyTransparent Pricing Policy

Index “A”Index “A” Uzbek ComponentUzbek Component

Average ValueAverage Value

Availability of cotton through the season: from September to August;

Sustainable quantities; Delivery terms: EXW-FCA-DAF-FOB-C&F/CIF Chitagong (38 days);

Payment terms: 30%-50%-80% prepayment - 100% L/C;

Fixation terms: - 33% Buyer’s call, 33% Seller’s call and 33% on the date of delivery;- 50% Buyer’s call and 50% Seller’s call.- 100% on the date of delivery.

Proposed General Terms for Bangladesh MarketProposed General Terms for Bangladesh Market (international merchants and local mills)(international merchants and local mills)

- Cotton terminals

- Bonded warehouses

Uzbekistan Cotton TerminalsUzbekistan Cotton Terminals• 21 cotton terminals• one time storage capacity - 372 000 tones

• 4 bonded warehouses - 48 000 tones of cotton

Tashkent

Karakalpakstan

Khorezm

Bukhara

Kashkadarya

Surkhandarya

Samarkand

Navoi Jizzakh

SirdaryaFergana

NamanganAndijan

RIGA

ILYICHEVSK

BURGAS

MERSIN

European transportation routes

Farab

Bandar-Abbas

Quingdao

Dostyk

AlashankouSari-Agach

Transportation routes of cotton-fiber to South-East Asian countries

Mumbay

Chitagong

Ho-shi-min

Busan

Urumchi

Tyanjin

Lyanyungan

Uzbek Cotton Values & Comparative AdvantagesUzbek Cotton Values & Comparative Advantagesfor Bangladesh Consumersfor Bangladesh Consumers

Reasonable Ratio of Price vs Quality;

Sustainable Supply;

Diversified Logistics Chain.

33rdrd International Uzbek Cotton Fair International Uzbek Cotton Fair

September 10-12, 2007, Tashkent