UZBEKISTAN: ASIA INSURANCE signing insurance contracts against cotton crop failure

2 May 2019 —
ASIA INSURANCE began concluding insurance contracts against crop failure in the cotton-textile clusters of UZTEX group, the insurer announced.

UZTEX Group is the largest exporter of textile products to CIS countries. It has about 45 countries in the list of its importers, including Germany, Spain, Italy, Poland, Portugal, Turkey, South Korea, and Japan. Since 2009, the UZTEX Group has been successfully operating eight factories: UZTEX TASHKENT, SHOVOT TEKSTIL, UZTEX SHOVOT, UZTEX UCHKURGAN, UCHKURGAN TEXTILE, UZTEX CHIRCHIK, EUROTEX GLOBAL, and KATQAL'A-TEKS.

In Uzbekistan in 2018, the cluster form of cotton and textile production, creating market relations between farms and enterprises of the textile industry, introduced in 20 districts of the country on a territory of about 160,000 hectares. This means that domestic textile enterprises can order and promote raw cotton production directly from farms and other agricultural producers.

During introduction of the cluster form of cotton-textile production in 2018, water-saving systems were introduced; drainage systems and reservoirs were built; pumping units were installed in areas with difficult access to irrigation; agricultural equipment was purchased; supply of mineral fertilizers, seeds, fuel and lubricants, means of chemical protection was arranged. Highly qualified specialists in agriculture (agronomists, specialists in modern engineering and technologies) were also involved; thanks to business trips abroad, the success of cotton growing in Turkey, Israel, Brazil and the USA has been examined; over 4,300 new jobs have been created. International experience shows the important role of agroinsurance in ensuring efficiency and stability in the agricultural sector.

As of today, ASIA INSURANCE has issued insurance contracts for a total amount of about UZS 20 billion (~EUR 2.11 million) for events of loss or damage to cotton crops as a result of natural disasters (low water level, water abundance, drought), damage from insects and cotton diseases, as well as fire, explosion, and lightning.