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Uzbekistan Introduces New System for Income Crop Cultivation

Tashkent, January 31, 2025 – The Europe Today: President Shavkat Mirziyoyev chaired a high-level meeting on implementing a new system for cultivating income crops on household and leased lands. The initiative aims to enhance agricultural productivity, create job opportunities, and increase household incomes by leveraging available land resources.

Uzbekistan currently has 508,000 hectares of household land belonging to over 5 million households, 17,000 hectares of dehkan farms, and 260,000 hectares of recently distributed land. These resources play a crucial role in ensuring food security. Over the past seven years, 2.3 trillion UZS in preferential loans and 265 billion UZS in subsidies have been allocated to support small-scale agricultural activities. Additionally, 5,145 mahallas have specialized in cultivating various crops, including fruits, vegetables, and lemons.

Through modern agricultural techniques, productivity has significantly increased. The average yield per hectare has risen from 18 tons to 38 tons. Storage, sorting, and processing facilities have been developed, with a capacity to handle 470,000 tons of fruits and vegetables annually. In several districts, such as Asaka, Jandar, and Shakhrisabz, farmers now harvest two to three times per year, generating average incomes of 15–20 million UZS per hundred square meters.

New Initiatives and Support Mechanisms

The government has studied feedback from farmers, processors, and exporters to identify areas of improvement. As a result, several initiatives have been introduced, including subsidies for trellis grape cultivation in Samarkand, preferential loans for raisin-drying equipment, and support for citrus and lemon farming using innovative trench and thermos methods in Sariasiya and Oltinsoy.

To address challenges such as the shortage of high-quality local green seeds, directives have been issued to bolster seed production and distribution. Furthermore, a separate council will be established to support dehkan farms and household agriculture. The council will oversee training programs, seed and seedling supply, and processing and export activities.

Under this initiative, the UzAgroStar holding company will be formed, and 15 specialized fruit and vegetable production companies will be established within nine state banks. Each company will be allocated 20 billion UZS from the state budget, with an additional $10 million in bank financing. A special fund with an initial capital of 260 billion UZS and a loan portfolio of 1.2 trillion UZS will be created to support these projects.

Enhanced Financial and Infrastructure Support

To facilitate agricultural expansion, freezers, packaging, drying, and processing warehouses will be installed in mahallas and leased to residents under a five-year installment plan. Entrepreneurs engaged in household farming services will benefit from seven-year preferential loans at a 17.5% interest rate. Additionally, 20 billion UZS in annual grants will be allocated for innovative farming projects, benefiting 500 mahallas.

Export-oriented farmers will receive subsidies of up to 100 million UZS, while short-term agricultural training organizers will be eligible for up to 5.5 million UZS in subsidies. To combat water shortages, the state will subsidize half the cost of building rainwater collection reservoirs in arid regions.

In a major financial reform, agricultural loans from the Agricultural Fund will be issued without collateral, requiring only an insurance policy. A new digital system for recording land usage and crop yields will be implemented, with all household plots classified and registered on the Online Mahalla platform by year-end. Farmers who generate over 5 million UZS in official income per hundred square meters will receive a 90% cashback on land tax, while unused plots will be subject to higher taxes.

Land Auctions and Digital Marketplaces

In response to challenges in marketing agricultural products, an online trading platform will be launched to connect farmers with buyers, processors, and exporters. Moreover, 3,300 hectares of unused land in Karakalpakstan, Andijan, Jizzakh, and Tashkent regions will be leased under a new system. These plots, ranging from 3 to 50 hectares, will be auctioned with detailed soil analysis reports and water supply limits. Entrepreneurs from other regions will also be allowed to participate, and land prices will be determined through competitive bidding.

From 2025, a revised taxation framework will be introduced for leased agricultural land. If land productivity increases, taxes will remain unchanged; if productivity declines, tax rates will triple.

Boosting Domestic Potato Production

Uzbekistan cultivates potatoes on 290,000 hectares, yet still relies on imports due to low-quality seed varieties. The government has tasked the Research Institute of Potato Growing with developing high-yielding varieties suited to local conditions. This year, 400 billion UZS will be allocated to potato production, and imported seed potatoes will be exempt from customs duties for three years. By 2027, domestic production is expected to fully meet national demand.

Recognition of Agricultural Achievements

During the meeting, President Mirziyoyev engaged with leading farmers and household plot owners. Notably, Genjimurat Turdimuratov from Karakalpakstan, recognized for achieving high yields through advanced greenhouse farming, was awarded the prestigious “Dustlik” order.

Government officials and financial institutions outlined strategies for implementing these reforms, with a goal of generating employment for 1.5 million people across Uzbekistan. The comprehensive agricultural initiatives are expected to drive sustainable rural development, boost exports, and enhance food security in the coming years.