KHUJAND, January 23, 2012, Asia-Plus  -- Textile enterprises operating in the northern province of Sughd cannot increase production because of lack of product market, according to the Sughd energy and industries department.

Twelve textile enterprises now operate in northern Tajikistan, manufacturing cotton yarn, cloths and ready-made clothes.

“Compared to 2010 these enterprises last year increased the aggregate production volume by 27.4 percent,” said the source.  “The findings of the survey, however, show that the enterprises used only 14.2 percent of their capacities.  Meanwhile, these enterprises are able to process a total of 32,000 tons of cotton per year.”

According to him, the enterprises cannot increase production volumes due to lack of product markets.  “The enterprises are currently seeking new outlets outside the country,” the source said.

“Thus, the Khujand-based Tajik-Iranian joint venture, Nikou-Khujand, plans to process only 300 tons of this year, while the enterprise’s annual capacity is up to 3,000 tons of cotton.  The reason is the same – lack of outlet,” he said, noting that another problem is the last year’s rise in prices for cotton.

It was unprofitable to buy cotton at new prices and sell cotton thread to partners in Turkey and Russia at old prices.

“In 2011, Nikou-Khujand produced a total of 1.331 million somoni worth of product.  Compared to 2010 the index of the volume of production amounted to only 36 percent,” the source added.