DUSHANBE, September 20, 2010, Asia-Plus  -- The Polish stockholder in the Tajik-Polish joint textile UniTexPol has suspended it operations in Tajikistan and left the country, Asia-Plus has learned from Alijon Hoitov, the director of closed joint-stock company Bofanda that owns shares in UniTexPol.

According to him, the Polish side has suspended operations due rise in prices of raw cotton.  “Polish partners have not worked with us since April this year, when the rise in the international prices of cotton was reported,” said Hoitov, “The enterprise, however, has not suspended its operations, though our Polish partners have recommended to give indefinite leave to  500 workers.”

Hoitov noted that the international price of one ton of cotton has risen from US$1,100 at the beginning of the year to more than US$2,000.

The Tajik-Polish joint venture, UniTexPol, was established in 2005.

In the meantime, Tajik textile enterprises are currently experiencing shortage of raw materials.

Anvar Sunnatov, the head of the planned-economic department within Tajikistan’s largest textile enterprise, Tojiktekstil, says the enterprise is currently experiencing an acute shortage of raw materials.  “The enterprise’s cotton reserves are enough for only several months of operation,” Sunnatov said.

According to him, high cotton price hurts domestic producers.  “Domestic producers do not have any privileges.  We have to buy cotton at prices of Liverpool Cotton Exchange while foreign producers may buy Tajik cotton at a discount,” said Sunnatov, “This has put domestic textile producers at a disadvantage.  In Uzbekistan, for example, Uzbek textile enterprises buy cotton at reduced price.”

Sunnatov says Tojiktekstil has repeatedly applied to the government, asking to review the cotton and grant discounts to domestic producers.  This proposal is still under consideration.