Technical and technological backwardness of textilemanufacture compared to foreign countries, resulted in highmaterial and power consumption and labour input.
Lack of a structured market of consumer goods, resulted in ahigher competition on the domestic market between Russianand foreign commodity producers.
A high dependence on imports.
High relative density of shadow economy.
Low level of innovative andinvestment activities in the cottonsector, led to low competitiveness ofdomestic goods, a low share of theknow-how and innovations inproduction.
Deficiency of highly skilled experts,administrative staff, basic andauxiliary workers.
Support to the cotton enterprises. For three yearsalready the production equipment has beenbrought into the country at
zero import duties
without the value-added tax (VAT)
The mechanism of subsidizing the interest ratesunder credits for purchase of raw materials andmaterials is active.
Compensation from the federal budget of a partof expenses for payment of interests on thecredits received on manufacturing exportproduction.
Funds from the federal budget for carrying outresearch and development in interests of lightindustry.
Operative preventive "Anti-Counterfeit" actionsfor suppression of illegal circulation of the goodsof light industry have been carried out.
Regional differences in support measures tocotton industry (taxes on property, on land andothers).
However,it is notenough.
In September 2009 theMinistry of the Industryand Trade of the RussianFederation adopted the«Strategy of developmentof light industry in Russiafor the period till 2020».