Why is this important
The new financing and subsidy system directly affects farmers’ income, the stability of the agricultural sector, and the saving of budget and credit resources. The proposed measures are aimed at reducing farmers’ dependence on loans, accelerating their repayment, expanding the renewal of agricultural machinery, and further saving budget resources through a more targeted subsidy system.
What happened
- Shavkat Mirziyoyev got acquainted with the presentation of the new system of financing and subsidizing the agricultural sector of Uzbekistan.
- Since the beginning of the year, 29 trillion soums have been allocated to finance cotton and grain farming, purchase agricultural machinery, and implement water-saving technologies.
- Additionally, 2.35 trillion soums in subsidies were allocated to the sector.
- In 2026, it is planned to allocate 34.2 trillion soums in subsidies and resources for cotton and grain producers.
- In addition, $200 million is planned to be attracted for the purchase of 800 cotton harvesters.
- It is proposed to allocate 5 trillion soums for agrotechnical measures, including the costs of film and hoses.
- The possibility of additional savings of 2.5-3 trillion soums is being considered through subsidizing 5% of the value of the sold cotton, provided that the farmer uses 50% of the credit limit.
Numbers and facts
- Thanks to subsidies of 10% of the cost of cotton, 3.4 thousand farms and clusters cultivated cotton on 151 thousand hectares at their own expense, which saved 1.9 trillion soums of resources.
- About 9 thousand farmers have repaid 2.5 trillion soums in preferential loans for cotton cultivation ahead of schedule.
- The acceleration of loan repayment is ensured by reimbursing part of the interest on loans when they are repaid within the year introduced in August.
- Businesses with a credit rating of “A” will be able to receive loans at a rate 2% lower than the general rate, and those with a credit rating of “B” — at a rate 1% lower than the general rate.
- Farmers who grow wheat at their own expense will be provided with a subsidy of 10% of the harvest value.
Context
- In Uzbekistan, the reform of the agricultural sector financing system continues, with a focus on reducing the credit burden, developing clusters, introducing water-saving technologies, and stimulating the self-financing of farms.
- The state is gradually moving away from the direct budgetary content of the industry and is transitioning to a model based on market mechanisms, lending, subsidies, and stimulating the independence of farmers.
- Special emphasis is placed on increasing the profitability of cotton and grain farming, reducing debt burden, and rational use of water resources.
