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Uzbekistan is making significant strides in the silk industry, developing innovative approaches to boost its global market share. The country is actively expanding mulberry plantations and intensifying the cultivation of silkworm cocoons, with the new season set to begin in late April and last for 30-40 days.

A Unique Household Economy Model

This agricultural initiative operates on a unique model where families, rather than large enterprises, form the core of production. Each household functions as a micro-economy, with members raising silkworms and feeding them mulberry leaves. Maintaining cleanliness and optimal temperature in their premises is crucial, as silkworms are sensitive to cold.

Community Involvement in Silk Production

The process of collecting cocoons, made from a sticky substance secreted by silkworms, involves not only the immediate family but also neighbors and relatives. This collaborative effort strengthens the social fabric of rural communities.

Uzbekistan's Growing Global Position

While China and India currently dominate over 90% of the global silk production, Uzbekistan holds a respectable third place with a 2.4% market share. Notably, Uzbekistan's productivity is rapidly catching up to the leaders. In an interesting trend, while global silk production is declining, Uzbekistan's output has surged from 12.5 thousand tons in 2017 to 24.3 thousand tons in 2022. This growth trajectory suggests Uzbekistan could become a global silk monopolist.

Government Support and Local Governance

The Uzbek government is actively supporting the industry. A presidential decree issued on March 6, 2026, introduced a package of subsidies, benefits, and incentives for cocoon producers. The distribution of this aid is managed by the 'mahalla жетілігі' – local self-governance bodies, which decide on loan and subsidy allocations.

Financial and Tax Incentives

Financial incentives are generous, including non-repayable subsidies up to 35% of the product value, interest-free loans of 4 million UZS per family for three years, and partial coverage of workers' wages from the state budget. The government also funds irrigation systems and well-drilling costs.

Tax benefits are also substantial. Buildings used for cocoon production are exempt from property tax, and there are concessions on land tax. Income tax has been reduced from 10% to 2%, and social taxes to 1%. Furthermore, individuals engaged in seasonal cocoon farming are entirely exempt from income tax.

Ambitious Development Goals

Uzbekistan has set ambitious targets for its silk industry by 2030. These include increasing cocoon production to 36,000 tons, boosting exports to $300 million, planting 200 million mulberry trees, creating 500,000 seasonal and 50,000 permanent jobs, and achieving 75% deep processing of cocoons.

Focus on Export Capital and Genetics

To achieve these goals, Uzbekistan plans to establish 8,000 hectares of new mulberry plantations and restore 15,000 hectares of existing ones by 2030, expanding the fodder base significantly.

The country aims to increase the processing level of silk raw materials to 75% through 21 investment projects totaling $200 million.

Developing Domestic Silkworm Strains

A key vulnerability identified is the production of silkworm eggs, with a significant portion currently imported from Greece and China. To address this, Uzbekistan is working to establish its own domestic silkworm strains, aiming for a 75% utilization rate of local eggs by 2030. New enterprises and stations are being established across several regions to support this initiative.

Challenges and Future Prospects

Despite the progress, challenges remain. The production of silkworm eggs is labor-intensive, and the privatization of former state-owned breeding enterprises has weakened the scientific and production base. Unlike countries like China, Japan, and South Korea, where breeding stations are state-controlled, Uzbekistan faces a different landscape.

Poor industrial infrastructure and a shortage of skilled personnel are also concerns, with many experienced specialists now working in other sectors. While new talent is being trained, retaining them in the industry is a challenge. The new government program is expected to provide a much-needed boost to revitalize the sector.