Silk industry to get boost

Silk industry to get boost

695 463 eucbi

According to the document, a new system of allowances set to be introduced in 2019 for the grown cocoons of silkworm over the limits. If the harvest exceeds the norm established by the contracts up to 5 kg, the size of the allowance will be 15%, if more than 5 kg-25% of the silkworm purchase price.

The government will provide compensation to cover interest expenses on bank loans allocated in 2019-2021 on projects of member organizations of Uzbekipaksanoat Association.

Compensation will be provided to projects for the purchase of mulberry silkworm grains, the establishment of mulberry plantations, the construction and reconstruction of facilities for the cultivation and processing of silkworm cocoons, as well as the modernization of production facilities.

The amount of compensation will be 50 percent of the interest rate set by commercial banks, but not more than 10 percentage points.

The total amount of compensation will be 100 billion soums per year.

Member organizations of Uzbekipaksanoat Association are exempt from payment of property tax and land tax for a period up to 1 January 2023, with the target direction of released funds towards the modernization of production, including the purchase of technological equipment.