To support the cashmere sector, ensure a supply of quality raw materials for national manufacturers, and support export of cashmere amid the COVID-19 pandemic, the government issued a resolution to support the industry. Minister of Food, Agriculture and Light Industry Ch.Ulaan introduced the resolution on April 3.

Cashmere manufacturers will be provided 300 billion MNT in loans with three percent interest rate, reduced from 12 percent, through Development Bank of Mongolia and the commercial banks.

The Ministry of Food, Agriculture and Light Industry will transfer the difference of interest rates, worth 27 billion MNT to banks. The soft loan is being provided at the request of the cashmere industry players, namely Gobi Cashmere Holding, Bogd Cashmere, Sor Cashmere, Khatad International, Mongol Nekhmel, Suvd, Goyol, Buyan, and Erdenet Cashmere.

Cashmere producers will be able to obtain discounted loans from Development Bank and commercial banks based on agreement with the ministry. 

They must follow requirements on herders' income, produce high quality cashmere, purchasing cashmere at a price specified in the agreement.

Minister Ch.Ulaan noted that the loan criteria are complicated. There are only three enterprises that able to meet the requirements and the ministry is working to ease the requirements.