New subsidies for Uzbekistan’s cotton-textile clusters risk entrenching farmer coercion unless tied to genuine reforms
TASHKENT — Labour rights advocates have warned that Uzbekistan’s latest subsidies and tax breaks for cotton-textile clusters could deepen existing power imbalances in the sector unless they are explicitly linked to reforms for farmers and rural workers.
President Shavkat Mirziyoyev has signed a decree to “improve financial sustainability” in the cotton-textile industry and support deeper processing of fibre. The measures include subsidies, compensation for loan interest and accelerated value added tax (VAT) refunds.
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