The Light Industry Agency, established this year by the Uzbekistan government will manage the fund that will reimburse farm and supply chain-level certification costs.
The fund aims to encourage greater certification uptake by offering tax benefits, simplified logistics, and preferential loan schemes.
BCI’s Uzbekistan programme head Katerina Gorbunova said: “Our continued engagement with the Government of Uzbekistan and its entities is testament to their collaborative spirit and commitment to transforming the country’s cotton sector.
“The cost of certification can be a barrier to entry not only for cotton clusters in Uzbekistan but farms around the world, so the launch of this fund will be pivotal to accelerating sustainability efforts.”
The strategic agreement marks a progression from the roadmap signed by BCI last year with Uzbekistan’s Ministry of Agriculture and the Textile and Garment Industry Association (Uztekstilprom).
It moves the collaboration into an operational phase, focusing on funding, clarifying institutional roles, and introducing policy measures to support the adoption of sustainable practices within Uzbekistan’s national systems.
The collaboration was announced at BCI’s annual multistakeholder meeting in Tashkent, Uzbekistan on 13 November 2024.
The event brought together representatives from government agencies, industry groups, brands, civil society organisations, and international partners to discuss developments in the cotton sector.
Among those present were officials from the Ministry of Agriculture, Uztekstilprom, and bodies including the International Labour Organization and Food & Agriculture Organization.
Light Industry Agency director Nozim Kholmuradov said: “Our strategic focus is to boost cotton-producing enterprises’ income and grow the number of Uzbekistan companies positioned to compete confidently on the global textile stage. A close partnership with the Better Cotton Initiative will be essential to reaching this ambition.”
In July this year, BCI introduced enhanced due diligence and decent work measures for its Uzbek operations.
