MNT 29 Billion paid to wool producers

The government has transferred MNT 29.4 Billion as incentive payments to 103,000 individual herders, who produced 14,700 tons of wool in 2012. Herders received their incentive payments through Human Development Foundation.

It has been decided since 2011 that herders who have produced and sold their wool to domestic processors would be rewarded with MNT 2,000 per each kilogram of wool. As a result, wool production in total was increased 2-3 times.

90% of the wool produced this year was supplied to domestic factories and processors. And, this will allow large processors to operate on a permanent basis throughout the year, and smaller ones would be able to expand their business activities. Production operations previously managed at household levels were upgraded to medium sized enterprises with the assistance of the incentive program.

According to industry experts, MNT 25 Billion is being planned for the wool incentive program in 2013, and since the amount may not be sufficient, further research is being conducted to increase the value of the total payment.