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Light Industry Sector to Be Supported by Taxation Policy and Other Ways

Ulaanbaatar, March 25, 2024 /MONTSAME/ President of Mongolia Khurelsukh Ukhnaa visited “Mogol noos” and “Blue sky cashmere” companies on March 22, 2024.


Mongolia has over 30 million head of sheep and consumes 36 thousand tons of wool a year. To develop the light industry sector, the President considers Mongolia should establish a good system for wool preparation, supply, the production of value-added and end products, and trading. Therefore, President Khurelsukh held a meeting with the representatives of the wool, and cashmere manufacturing sector to discuss the pressing issues they face and find solutions.


Directors of the companies expressed their gratitude for the decision of the Government of Mongolia to cover the payments for electricity, heat, and water from the State during the pandemic years which allowed manufacturers to continue their production without interruption, and keep the workplaces. Long-term and low-interest loans and support with the taxation policy and the State procurement will enable national companies to meet the national demand and increase their export, the management staff of the companies noted. Also, the high cost required to establish a high-technology factory and its operating expenses cause tremendous challenges, they said.


The State and Government of Mongolia are taking action in stages to support the light industry sector. For instance, last year more than 20 thousand herders received over MNT 6 billion as wool allowance. This year over MNT 23 billion is planned to be distributed.   

A total of 38 enterprises received soft loans of MNT 170 billion, and MNT 18 billion as loan interest subsidies in 2023. Moreover, when enterprises in the light industry sector import manufacturing technology, the equipment will be exempted from tax over the first five years or until that technology is localized, and the entity will be supported through tax reduction or state procurement, as it projects.



“Mogol Noos” Company


This Company produces “Mogol” brand wool fabrics, thick cloth, coats, suits, textile shawls, scarfs, and knitwear.

The factory has expanded its capacity three times, increasing washing capacity to 5000 tons of wool, and cashmere a year. The company exports 80 percent of its products. The company features its production of thin woolen thread, produced by sorting out cashmere fiber from sheep wool for the first time in Mongolia.

Mongolia imports 450-500 tons of yarn while “Mogol” factory produces 300 tons of thick yarn. Therefore, operating at full capacity “Mogol Noos” can meet the whole national demand. 


“Blue Sky Cashmere” Company

The company produces over 1000 types of textiles and knitted products. It has an annual capacity of 250 tons of dyed wool and cashmere, 60 tons of textile thread, 500 thousand meters of textiles, and 70 thousand pieces of knitted products. Last year, the company launched a new line with equipment of Japanese advanced technology and created about 100 new jobs.

“Blue Sky Cashmere” exports 80 percent of its products to over 10 countries. Besides cashmere,  yak, camel, and sheep wool products of the company are supplied to the international markets.




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