Presidential decree expands Ministry’s role in rural development

The Ministry of Poverty Reduction and Employment has been assigned new responsibilities and functions following a Presidential Decree on February 14 titled “On the Introduction of a Modern Organizational System and Additional Measures for Financial Support in the Activities of Household Landowners and Small-Scale Farmers.”

According to the decree, the Council of Farmers, Small-Scale Farmers, and Household Landowners of Uzbekistan has been renamed the Council of Farmers of Uzbekistan.

The Ministry of Poverty Reduction and Employment has been tasked with additional responsibilities aimed at developing small-scale farms and household agriculture, including:

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Subsidies allocated to members of poor families

• Conducting a complete inventory of land used by household landowners and small-scale farmers, keeping records of agricultural production, and developing an accurate database on the "Online Mahalla" platform;
• Encouraging the cultivation of high-value crops using modern and eco-friendly techniques, tailored to the specialization of districts and neighborhoods, to boost employment and lift families out of poverty.

To support these efforts, a special council has been created to develop the activities of household landowners and small-scale farmers, alongside the establishment of the Farm Support Fund and the Fund for Supporting Small-Scale Farmers and Household Landowners under the Ministry.

The decree introduces new financial support mechanisms for household landowners and small-scale farmers through the Fund for Supporting Small-Scale Farmers and Household Landowners:

• Annual grants of up to 100 times the BCA for the most innovative and successful household farming projects in 500 neighborhoods.
• Subsidies of up to 15 times the BCA to cover costs for short-term training courses organized by experienced farmers.
• Subsidies of up to 100 million soums for experienced farmers who have established export-oriented production in at least 50% of households in a neighborhood.
• Long-term loans for projects related to the cultivation, processing, drying, storage, and packaging of agricultural products through commercial banks. Loans will be offered for up to 7 years at 4 percentage points above the Central Bank’s base rate, with a 2-year grace period.
• Leasing opportunities for compact refrigerated warehouses, packaging, drying, and processing equipment, as well as ready-made greenhouses, with a 5-year repayment period and a 24-month grace period.

It should be noted that on January 30, during a meeting on profitable production on household plots and leased lands, it was announced that 400 billion soums would be allocated from the Agricultural Fund for potato cultivation development this year.