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Mongolia raising funds to support wool sector
18 May '11
1 min read
To support the wool and cashmere sector, Mongolian Government is raising MNT 110 million by selling bonds.
The decision has been welcomed by both the Mongol Cashmere Association and the Union of Wool and Cashmere Producers.
Mongolia produces about 23 percent of the total world production of cashmere or between 6,000 and 7,000 tons annually. However, most of this (80 percent) is exported to China free of tax – a reason why national companies are in need of Government support.
Government loans from the MNT 110 million fund would provide the national companies the much required capital to purchase cashmere from herders in Mongolia.
This may not only save about 6,000 jobs but also create 1,600 new ones. The additional capital would also enable companies to produce goods worth MNT 250 billion, but again, most of it could be exported.
The decision has been welcomed by both the Mongol Cashmere Association and the Union of Wool and Cashmere Producers.
Mongolia produces about 23 percent of the total world production of cashmere or between 6,000 and 7,000 tons annually. However, most of this (80 percent) is exported to China free of tax – a reason why national companies are in need of Government support.
Government loans from the MNT 110 million fund would provide the national companies the much required capital to purchase cashmere from herders in Mongolia.
This may not only save about 6,000 jobs but also create 1,600 new ones. The additional capital would also enable companies to produce goods worth MNT 250 billion, but again, most of it could be exported.
Fibre2fashion News Desk - India
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