On November 24, President of the Republic of Uzbekistan Shavkat Mirziyoyev held a meeting on the development of agricultural clusters and subsidiary and dekhkan farms, as well as the measures taken to improve crop productivity and employment opportunities, the press office of the President of Uzbekistan reported.
Cluster farming – textile, grain, viticulture, fruit and vegetable farms is being introduced in Uzbekistan’s agricultural sector. Currently, the potential of such associations is not fully used. In this regard, the country is adopting a new system to develop and finance fruit and vegetable growing clusters, as well as dekhkan and subsidiary farms.
From December 1, the State Support Fund for Agriculture will provide soft loans to fruit and vegetable producers for a one-year period at a 14% interest rate with the six-month grace period. Cluster farms will receive “revolving” loans, when the borrower can use these funds as needed and is required to pay only the interest on the loan for a certain period. About 2 trillion soums will be allocated for this purpose. US$ 100 million will be directed to supporting small horticultural, fruit and vegetable farms and vineyards.
The President of Uzbekistan issued the resolution on the allocation of 80,000 hectares of land for dekhkan farms. The plots with an area of from 1 to 10 hectares can be taken on lease for 10 years. Farms created on these plots will have access to concessional financing for a two-year period with the six-month grace period. The enterprises that render services to subsidiary farms will receive loans as well.
Reimbursement from the budget funds of irrigation costs in the regions with limited access to water will be extended until 2026.