On December 9, President Shavkat Mirziyoyev reviewed plans on financing for cotton and grain cultivation, as well as a new subsidy system for the agriculture sector.
A total of 34.2 trillion soums is planned for the cotton and grain cultivation, subsidies and other expenses next year. Additionally, there are plans to attract an extra $200 million to purchase 800 cotton harvesting machines.
New support mechanisms were reviewed.
Currently, when providing loans to farmers, the same interest rate is applied to both financially stable farms and those with poor payment discipline. In this context, to implement a “discipline for affordable credit” model, it is proposed to offer loans to farms with an “A” credit rating at a 2 percent reduced rate and to those in the “B” category at a 1 percent reduction, which will ease the credit burden for farmers with good payment discipline.
Moreover, it was proposed to provide a 10 percent subsidy to farmers who grow wheat at the expense of their own funds.
Currently, there are 52 types of subsidies in agriculture. Under the new system, these processes will be fundamentally simplified: the human factor and bureaucracy will be significantly reduced, and application procedures will be fully digitalized.
The head of state gave specific instructions to further improve financing mechanisms, ensure subsidies are targeted and delivered promptly, digitalize all processes, and create favorable conditions for farmers.
