Representatives of the Mongol Cashmere Association and the Union of Wool and Cashmere Producers issued a statement on Wednesday, welcoming the Government decision to raise MNT110 million by selling bonds and to use it to support the wool and cashmere sector.
Mongolia annually produces between 6,000 and 7,000 tons of cashmere or about 23% of the total world production. However, 80% of this is exported to China free of tax and national companies badly need state support. The proposed loans would give them the capital to buy cashmere from herders. That would help save about 6,000 jobs, and may even create 1,600 ones. Also, the companies will produce goods worth MNT250 billion and 80% of this could be exported.