According to Norma, the Uzbek Republican Commodity and Raw Materials Exchange will now set the starting price for raw cotton based on the average futures quotes for cotton fiber on the New York Exchange over the past six months. For the 2025 harvest, the price will be announced on February 1, while for all subsequent harvests, it will be announced on November 1.
Sales contracts for cotton will be concluded exclusively through exchange trading. Farms and processors will have the freedom to select delivery dates and buyers themselves, with trading organized by regions. Transactions can be formalized as futures, forward, or spot contracts, allowing market participants to choose the format that suits them best.
Futures contracts will be concluded from November 1 of the calendar year until June 1 of the following year, while forward contracts will be valid until March 1. Spot transactions will be arranged for the already harvested crop stored in warehouses.
To ensure the storage of cotton, farms must confirm the availability of warehouses that meet the requirements or enter into a lease agreement by March 1 (for the 2025 harvest — by May 1).
To support producers, preferential loans will be provided based on futures contracts. Additionally, farms that have grown raw cotton using their own funds and commercial loans and have sold it on the exchange will receive a subsidy of 10% of the product's value. Farms that repay preferential loans early will receive a refund of a portion of their interest payments.
Moreover, entrepreneurs will be able to obtain three-year loans for purchasing equipment for the storage and processing of cotton, which should promote the modernization of infrastructure in the sector.
It is worth noting that in the Tashkent region, plans are in place to start growing cotton using special Chinese technologies.