Uzbekistan has adopted a resolution on the mandatory sale of cotton, cottonseed oil and meal through the stock exchange

Published 2022년 11월 28일

Tridge summary

From December 1, 2022 to January 1, 2024, Uzbekistan will mandate the sale of certain agricultural products, including cotton seeds, cottonseed oil, processed seed waste, and consumer ethyl alcohol, exclusively through exchange trading. This decree, aimed at preventing price spikes and artificial deficits, will apply to 100% of goods produced by entities with less than a 50% state share or no state share. The antimonopoly authority will oversee the approval of auction schedules for highly liquid and monopoly products, and mechanisms will be introduced to track market prices and detect violations. Additionally, entrepreneurs can use guaranteed settlement services under direct contracts concluded outside the exchange.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

From December 1, 2022 to January 1, 2024, in the domestic market of Uzbekistan, cotton seeds, cottonseed oil (including cottonseed oil), processed seed waste (meal, husks) and consumer ethyl alcohol are subject to sale exclusively through exchange trading. This is stated in the Decree of the President of the Republic of Uzbekistan dated November 24, 2022 No. PP-430 “On expanding the use of exchange mechanisms in sectors of the economy and improving the system of regulation of exchange trading,” Norma.uz reports. It is clarified that we are talking about 100% of the volume of products produced by legal entities that are not monopolists, and (or) legal entities with a state share of less than 50%, or legal entities that do not have a state share. “At the same time, business entities put up for exchange auctions a part of these goods that exceeds the volume they use for their own needs,” the report says. This resolution is also being introduced in order to prevent a sharp increase in ...

Source: Oilworld