Measures to develop agricultural sectors were discussed

On 9 November, a video conference meeting was held under the chairmanship of President Shavkat Mirziyoyev on improving the activities of cotton-textile clusters, supporting and increasing the productivity of agricultural sectors.

The impact of the deteriorating situation and trade restrictions in the world is also felt in the domestic economy. In particular, these factors had a negative impact on food and textile exports. In this situation, the most correct way is to reduce costs by increasing agricultural productivity, increasing investments in deep processing and creating added value, and increasing exports.

In this regard, measures to support agriculture with new approaches, organizational and financial assistance were discussed at the meeting. The head of our state touched upon each industry separately and presented new proposals and initiatives.

According to the analysis, this year in 41 cotton-textile clusters the harvest exceeded 40 quintals, and in 9 - less than 30 quintals. In Jizzakh, Kashkadarya, Namangan, Samarkand and Tashkent regions, due to low productivity and high costs, profitability did not exceed 10-11 percent.

There are also positive experiences. For example, in the Navbahor cluster in Navoi region, a new foreign cotton variety produces on average more than 70 centners of yield per hectare, the cost of which is almost two times lower than in Jizzakh region.

New approaches to the production of cotton seeds are similarly indicated. Thus, in one of the districts of each region with a low-quality score, insufficient access to water and a yield of less than 30 centers, the import of cotton seeds with a yield of more than 70-80 centners will be allowed. Planting of varieties with a yield of less than 30 centners will also be stopped and replaced with new high-yielding varieties developed by seed institutes.

Another pressing issue in the field is the violation of the discipline of mutual settlements between some clusters and farmers. 122 clusters have debts to the Agriculture Fund and farmers. 6 clusters were provided with preferential loans, although they do not have production facilities.

Based on this, a decision was made to introduce a new system for organizing clusters and organizing their interaction with farmers.

From now on, newly created clusters will be required to have sufficient financial indicators, production capacity and equipment; they will be selected on the basis of an open competition. They will have to have at least a two-step processing.

Farmers will be able to enter into futures contracts with any cluster within the same region. They will also be able to sell a portion of the crop above the futures through the exchange.

Also, preferential loans in the form of a 60 percent advance for growing cotton for next year’s harvest will be allocated directly to farmers.

Clusters will be financed through the purchase of grown cotton and the provision of funds for harvesting. Separate funds will be allocated for deep processing.

Responsible persons have been instructed to establish a new procedure for financing clusters and farms, and to settle receivables and payables between them. The need to transfer clusters to international financial standards was noted.

With this year’s cotton harvest fully processed in 2024, industrial output is estimated to reach US$9.6 billion and exports to US$4.5 billion.

In particular, projects have been launched to organize the production and dyeing of fabrics worth US$350 million in Yukorichirchik district of Tashkent region, the production of artificial threads, fabrics and their dyeing for US$60 million in Karakalpakstan. These enterprises will be launched next year and transferred to entrepreneurs on industrial mortgage terms. They will create the opportunity to export products worth US$1.5 billion.

In order to support the development of this industry, the President of the Republic of Uzbekistan signed a decree according to which a new system will be created to support textile, dyeing and clothing production. In particular:

- enterprises that sell at least 50 percent of dyed fabrics to the domestic market pay social tax at a rate of 1 percent;

- they are allowed to pay property tax in installments for 3 years;

- until 1 January 2025, 50 percent of transport costs for the import of cotton and artificial fiber will be compensated;

- technological equipment and spare parts imported by textile and sewing and knitting enterprises are exempt from customs duties.

The President emphasized the importance of using these opportunities to increase the number of projects, covering half of infrastructure costs.

It was noted that 16 thousand hectares of orchards and 10 thousand hectares of vineyards have low productivity. This means they are losing at least US$3-5 thousand per hectare, an average of US$100 million per year.

In this regard, in each district, under the leadership of the khokim, a working group will be formed with the participation of agricultural specialists, tax authorities and statistics, which will conduct an inventory of orchards and vineyards at least once a year. If they are found to be ineffective, the benefit that exempts them from land tax will be canceled and the tax will be collected in full. Starting next year, differentiated land tax rates will be introduced for orchards and vineyards, depending on productivity and yield.

The tasks of growing food crops between rows in gardens and on private lands are also touched upon.

Today, the poultry industry produces 690 thousand tons of meat and 8.7 billion eggs annually. Prices for these products have increased significantly in recent months. The problem with feed does not allow us to reduce the cost of food. Therefore, it was ordered to organize 8 large granaries.

Another important issue: in our country we do not have a pure line of first-order poultry parent flock, as a result of which we have to import 3 million chickens. Obtaining such a line will allow increasing production by 3 times and reducing the cost of chicken by 10 percent. Most importantly, it will be possible to export US$50 million worth of hatching eggs and chicks per year. In this regard, the task has been set to reach an appropriate agreement with US companies.

Instructions were given for the creation of livestock clusters in 25 districts and state support for enterprises producing and processing milk. Issues of increasing fish production and constructing reservoirs based on the experience of Slovenia were also raised.

The issue of financing the agricultural sector was also analyzed at the meeting. It was noted that funds raised from international financial organizations are not fully used.

Although these funds are attracted for 20-25 years, banks allocate them to entrepreneurs for 5-7 years. The period for reviewing projects for a loan lasts up to one year. Due to the limited areas of use, these resources are of little interest to entrepreneurs.

Therefore, it is emphasized that these resources should be distributed on conditions that are attractive for both banks and entrepreneurs. It was decided that the term of loans for agricultural projects will be extended to 15 years with a three-year grace period, and their consideration will be reduced to 2 months.

The Ministry of Agriculture has been instructed to organize an internal audit service for the targeted use of funds allocated by international financial organizations, the budget and banks.

It is also indicated that large retail chains have not created equal conditions for local producers, which affects competition and prices.

Special attention at the meeting was paid to the issue of ensuring budget revenues. It was noted that there are shortcomings in some regions and cities, and that the size of revenues does not correspond to the growth in production, exports and investments in these regions.

It was emphasized that serious preparations have been made for the autumn-winter season, and therefore responsible persons have been tasked with providing the regions with natural gas and streamlining the accounting of its consumption.

 

 Source of information: https://www.uzdaily.uz