Doing Business in Azerbaijan 2009 - Azerbaijan Export ...

106 DOING BUSINESS IN AZERBAIJAN
Textile & cotton
Azerbaijan has a long tradition of production, spinning and weaving
of cotton and silk. Industrial weaving started in the late 19th
century. Further industrialization of Azerbaijan in the 20th century
stimulated rapid development of light industries including textiles.
The main raw materials for the domestic textile industry are cotton,
wool, silk cocoons, leather and synthetic fibre. They are produced
locally in abundance.
After a period of crisis in the mid 1990s, cotton cultivation has
increased. The sown area for cotton rose by almost 10% between
2002 and 2003, to reach 66800 hectares. Output rose by more than
23% over the same period, to 99500 tonnes. This indicator was
55,4 ths tons of raw cotton in 2008. More than half of the increase
was derived from higher productivity.
The overall potential production of cotton in Azerbaijan is as much
as 800000 tons from approximately 280000 hectares. This level
was achieved in mid 1980s with massive capital investment by the
Soviet government.
Other raw materials that are also important for the weaving
industry of Azerbaijan are wool and silk cocoons. In 2008, the local
sheep stock reached 8 million, and approximately 15 ths tons of
wool was produced.
There is a potential to produce over 9,000 tons of silk cocoons
annually by increasing the area of mulberry plantations to 25,000
hectares. Normally, 1 kg of silk cloth is produced from 3.5 kg of
local cocoon (the Japanese standard is 1 kg of silk per 2.8 kg of
cocoon). So the potential of the local silk industry is 2,600 tons or
about 18 million m2 of silk cloth (1 kg - 5-7 m2).