A joint venture by two enterprises is set to launch the hemp industry in Uzbekistan. The joint venture is being undertaken by Marafon Finlex, a state-owned company that is based in Tashkent and Opal & Co. based in New Aquitaine, France. The two will merge to launch ABM Organics, which will run Uzbekistan’s hemp projects slated for the Khorezm region.
The newly launched brand said that it would be making Uzbek branded products targeting the European export market. It will also look to attract technology and investors into the Asian nation.
Earlier this year, the government of Uzbekistan laid bare its plans for the industrial hemp industry. This was after President Shavkat Mirziyoyev signed a law that allowed companies controlled by the state to grow hemp with a THC limit of 0.2%.
The country stipulates that its hemp will be used for industrial purposes alone. The Uzbekistan Cabinet of Ministers is responsible for the award of hemp cultivation, import and export, processing, sales, purchase, storage, and transport licenses.
The Uzbekistan government wants to strengthen its position as a historic center of the Great Silk Road by being a major producer of hemp and textiles. According to ABM, the country’s climate is perfect for the crop as it has thrived since ancient times.
Noticeably, Uzbekistan is the world’s 7th largest producer of cotton. The crop accounts for the Asian nation’s 15% of exports. The government has set its eyes on diversifying into farming cereals alongside lowering the cost of producing cotton in the country.
Agriculture is a major part of the Uzbekistan economy employing 23% of the country’s workers in a population of 33 million. Uzbekistan gets 17% of its GDP from the sector.