The Hindu Business Line : FIEO exploring trade potential with Uzbek, Kyrgyztan

THE Federation of Indian Export Organisations (FIEO) has launched a major exercise to open up trade possibilities with Uzbekistan and Kyrgyztan in cotton and silk.

A four-member FIEO trade delegation is just back from a visit to these two countries, after exploring the possibilities for trade, and also joint ventures between both countries at a later stage in the areas of cotton and silk.

Talking to Business Line from Ambur in Tamil Nadu, Mr Rafeeque Ahmed, the FIEO President, said the visit was a successful one, and that FIEO was now planning to send a bigger trade team not only to explore joint ventures, but also the possibilities for getting mining rights for gold and diamond.

He said the visit was the outcome of FIEO's earlier successful buyer-seller meets (BSMs) in both Uzbekistan and Kyrgyztan in January this year.

The team comprised Mr S.S. Shah, Chairman, Eastern Silk Industries Ltd, Kolkata, Mr G. Venkatesh, Senior Vice-President of the company, which manufactures silk yarn, fabrics, made-up scarves, and knitted garments, Mr T.R. Kannan, Director, Jayajothi & Co. (a Rajapalayam-based company manufacturing dealing in cotton yarn, blended yarn, grey and printed fabrics and medical dressing needs), and Mr G. Balachandran, Director-General, FIEO.

While Eastern Silk is engaged in the collection of cocoons from the tribals community of cocoon farmers to the final finishing and exports, Jayajothi imports the raw cotton.

The FIEO President said it has been made clear by the delegation members that initially, they would be interested to buy cotton and silk, and in due course, establish joint ventures with their counterparts in the two countries.

The members, it is learnt, would not only purchase the available cocoons for silk production, but also ensure that the entire produce of farmers is purchased to reduce cultivation risks.

He said the team members also met representatives of UzInterimpex (dealing with sale of cotton in the country), Uzbek Silk Association (dealing with silk industry), JSC Uzbek Light Industry (deals with cotton industry), "JSC Uzbeksavdo" (dealing in consumer products) and other departments of both countries dealing with geology and mineral resources.

Mr Ahmed said senior officials of the geology department of both countries have made available all relevant data about gold and diamond mining.

In Kyrgiztan, the FIEO team had detailed discussions with Mr Amangeldi Muraliev, Minister of Economic Development, Trade and Industry and Mr Baitiminov Bayalin, Deputy Minister for Agriculture and Water Resources, besides senior officials from Kyrgyz Exporters' Associations and Kyrgyz Chamber of Commerce and Industry.

The delegation also visited Tekstilshik (cotton textile factory), and the units of Osh Silk and Osh King Silk.

Mr Ahmed said the team members also visited the free economic zone in the Kyrgyz Republic and were assured of all assistance by the Government to set up units in the zone.

It is learnt that the Chairman of the FEZ was particularly looking forward to cooperation in silk processing. Members also held detailed discussions with trade associations, cultivators and traders dealing in silk, cotton and mulberry.

Talks were also held for purchase of raw materials for processing in India and later convert these arrangements into joint ventures with equity participation. Mr Ahmed said the members have conveyed the view that the raw materials are to be made available at a price lower than the prevailing international price.