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Uzbekistan: Financial Guarantees for Farmers

The President of Uzbekistan has granted the farming enterprises that grow raw cotton and grain with a three-year grace period for payments for debts.

In particular, farmers are exempted from paying debts to servicing organizations for three years, including intra-industry debt, as well as to the budget and state trust funds. In this case, they will be written off all accrued penalties and fines.

Shavkat Mirziyoyev instructed the government to carry out a full inventory of the farms’ debts by the end of March and take the necessary measures to streamline it.

In addition, the authorities decided to subsidize the state budget for the cost of electricity consumed by pumping units of farms and water users' associations.

Among other innovations in the sphere is the organization of the State Support Fund for Agriculture under the Ministry of Finance. It will be established on the basis of the Fund for Targeted Financing of Government Procurement of Agricultural Products and Equipment with Agricultural Technology.

One of its main tasks is to create a financial cushion in the event of a sharp decline in world prices for cotton fiber. A special insurance account will be created for this purpose.

There will also be a financial pool for farmers. In particular, funds amounting to 150 billion soums (currency rates of CB RU from 12.03.2018, 1$= 8140.06  soums) are allocated in the Agrobank, which will be used to assign loans to farms that grow grain in excess of the state purchases, at a rate of up to 10% per annum.

In addition, targeted funds amounting to 100 billion soums will be created in the budget of Karakalpakstan and the regions to cover the costs of pest control, as well as the preservation of the crop in emergency situations.

The President also exempted from customs payments – through to 1 January 2021 – phosphate fertilizers imported by business entities, including agricultural producers, as well as phosphorite raw materials imported for the production of phosphate fertilizers.

(Source: «Uzbekistan Today» newspaper)