As of March 2020, Uzbekistan liberalized the cotton market with a presidential decree. Starting from the 2020 harvest season, State regulation of cotton production, price and mandatory sales plan is abolished. The cotton production area is estimated as 980,000 hectares for Marketing Year (MY) 2020/21 and the production is about 3.1 million bales (about 670,000 MT). At this point, it was expected that Uzbekistan's cotton exports will be kept to minimal levels due to the government policy to increase value-added yarn and fabric production and develop the domestic textile industry. The Government has dedicated significant resources into increasing cotton processing and textile manufacturing. According to Government statistics, since 2017, cotton processing has increased from 40% of cotton crop in 2017, to 100% in 2022. In September 2022, the President said that the quote system for famers had been abolished, and cotton was no longer exported, and was instead processed domestically. The company is working to introduce modern and sustainable technologies to the Uzbek cotton sector, including full traceability of products. Dan Patterson, Silverleafe General Director, was awarded the Order of Friendship by President Shavkat Mirziyoyev in 2022. Uzbek cotton exports have become the cause of a scandal related to the
Russian-Ukrainian war and sanctions imposed on the Russian military industry. According to the Organized Crime and Corruption Reporting Project (OCCRP), Vlast, and iStories, after February 24, 2022, Uzbekistan significantly increased its exports of cotton pulp and nitrocellulose to Russia, key components for the manufacture of explosives and gunpowder. According to
Ekonomichna Pravda, at least two large Uzbek exporters have been working with Russian military-industrial complex enterprises. Documents from the Federal Tax Service of the Russian Federation confirm that at least three Russian companies - Bina Group, Khimtrade, and Lenakhim - sold imported cotton pulp in Russia to military plants under US sanctions.{{cite web|url=https://www.pravda.com.ua/eng/articles/2024/01/10/7436569/ ==References==