Legislative amendments to lift ban on entrepreneurial activities in Kazakhstan’s cotton industry

Astana. March 28. Silkroadnews - Kazakhstan's draft law "On amendments and additions to some legislative acts of RK on cotton industry development" would lift a ban on entrepreneurial activities.
Adoption of this amendment would allow cotton refining organisations to disregard the stipulations of previously enforced ban. They can now buy unrefined cotton from other produces and finance their deals with futures contracts.
Moreover, a number of legislatively enforced systemic measures for government support of cotton industry development are proposed to be introduced in Kazakhstan. Such move would assist formation and regulation of cotton market as well as protect the economic interests of its Kazakhstani actors.
The necessity of such legislative amendments is dictated by the decline of the cotton industry that is currently happening in the country.
Among some of the main problems are: imperfection of current legislation, low efficiency of financing mechanisms, administrative barriers, lack of modern agro-technical knowledge and low level of profitability, as the explanatory note states.