In Andijan, a cotton cluster was also started

In Andijan, a cotton cluster managed by "Khantex Group" LLC has come under scrutiny for manipulative practices, leading to official action by the Committee for the Development of Competition and Protection of Consumer Rights.

According to the committee's Andijan regional administration, "Khantex Group" LLC was supposed to sell 8,000 tons of technical seed products during the 2023-2024 season, adhering to a monthly approved schedule. However, irregularities were detected in March and April 2024. Specifically, the company failed to offer 3,000 tons of technical seed products in March, and in April, it released only 3,000 tons instead of the scheduled 5,000 tons, falling short by 2,000 tons.

Furthermore, in April 2024, "Khantex Group" set the initial price for 3,000 tons of cotton seed products at 2,600,000 sums per ton, but later raised the price to 2,652,000 sums. This resulted in the sale of products worth 7.956 billion sums. A similar price increase occurred in February 2024 when the starting price for a ton was set at 2,600,000 sums but increased slightly during the stock exchange trading.

The committee found that the price manipulations led to a total difference of around 380 million sums when compared to the average market prices. Due to these violations, the Andijan regional administration initiated legal proceedings against "Khantex Group" LLC, citing breaches of Article 29 of the Law "On Competition" and Cabinet Resolution No. 170. A measure of influence was subsequently applied in accordance with the law.

This is not the first case of such violations. A similar action was taken against "Karshi Agrocluster" LLC in Kashkadarya region, where cotton fiber products were sold through direct contracts, leading to price discrepancies amounting to approximately 517 million sums.

These cases highlight ongoing issues in Uzbekistan’s cotton clusters and efforts by authorities to ensure transparency and adherence to market regulations.