Farmers to be granted soft loans up to 150 million soms

The resolution of the President of the Republic of Uzbekistan «On additional measures of financial support of agricultural production» was adopted.  You can find the full text of the decision below.

To ensure a sustainable supply of domestic market food products, increase the income of the population by increasing production, as well as the continuous provision of material resources (services) to agricultural producers and procurement of guaranteed products:

1. Funds allocated by the Ministry of Agriculture, the Ministry of Finance, and the Horticulture and Greenhouse Development agency (hereinafter - the Horticulture agency) His proposal for an additional budget credit of 300 billion soms at a 10 percent annual rate for 12 months, including a grace period of 11 months, to the Horticulture and Greenhouse Fund through its use.

The Ministry of Finance shall be entrusted with the task of granting an additional budgetary credit based on the orders of the Horticulture agency during the year at the expense of the returned funds.  It should be determined, however, that the total amount owed under the allocated budget credit should not exceed the 300 billion soms under this decision.

2. The funds referred to in paragraph 1 of this decision shall be channeled by the Horticulture agency to commercial banks as a resource, and to the heads of the project offices of the agency for Horticulture and Neighborhood Business Development, employment promotion and poverty reduction on the recommendation of deputy district (municipal) governors:

Seeds and fertilizers for growing fruit, grapes, potatoes, vegetables, legumes, green and medicinal plants, legumes and oilseeds (hereinafter - crops) for agricultural enterprises for the delivery of manure, fuel, plant protection is allocated to enterprises processing, storing, and exporting products - to replenish working capital necessary for the purchase of grown crops.

In this:

- loans for growing crops up to 150 million soms are issued without collateral;

- Interest payments on loans are set at 14 percent per annum (3 percent of which is a bank margin) and loans are issued for up to 6 months with a grace period of up to 12 months;

- up to 50% of the allocated credit funds are provided in cash on the application of the borrower;

- The funds of the Horticulture and Greenhouse Development Fund are accepted as collateral for the loans.

3. The Ministry of Finance and the Ministry of Agriculture shall ensure that the Horticulture agency is provided with the necessary funds six months in advance to finance the costs of growing crops and to support the procurement system.

4. Note that:

a) A default or crop risk insurance policy is accepted as collateral for loans to farmers who grow crops, which may be used to repay loans;

b) 50% of the price of crop insurance is covered by the State Agricultural Support Fund.

The Ministry of Finance has decided to allocate the necessary funds from the State Budget of the Republic of Uzbekistan to the State Support Fund for Agriculture to cover 50% of the costs of crop insurance to the growers of crops for 2023 and the following years.

5. Director of the Horticulture Agency Karimov H., Chairman of the Council of Farmers, Farmers and Owners of Private Plots of Uzbekistan Hayitov A., Chairman of the Council of Ministers of the Republic of Karakalpakstan and governors of regions:

•    determine personal responsibility for the reduction of imports due to the production of 20,000 hectares of arable land, which will be allocated this year, and 95,169 hectares in 2023;

•    In 2022-2023 to ensure that the area of cultivation of food reaches no less than 300 thousand hectares.  The number of hectares of cultivation of food products will increase by 25 thousand hectares.  In this case, the Horticulture agency determines the placement of the crops on the land intended for food production.

6. Chairman of the Council of Ministers of the Republic of Karakalpakstan, the Ministry of Agriculture (A.Voitov), the Council of Farmers, Peasants and Owners of Private Plots of Uzbekistan (A.Khaitov) and the Agency for Horticulture (K.Karimov) together with the Akims of the regions, districts (cities):

•    Supply of productive seeds and seedlings, fertilizers and plant protection products, holding off visiting fairs and placement of crops on land on the principle of «one contour - one product»;

•    take steps to conclude contracts for the guaranteed purchase of agricultural products.

7. The Multimedia Centre under the Ministry of Agriculture shall undertake the following tasks to inform the general public about the ongoing reforms in the horticultural sector, achievements and results:

•    to enhance the knowledge and skills of farmers, landowners and residents in the field of horticultural production through media products
(Clips, shows, reports, interviews, and various slides);

•    Organization of television programs to teach people to take an interest in agrarian entrepreneurship and to increase their income through the efficient use of land and resources;

•    Informing the public widely about news, positive experiences in agriculture, as well as about food requirements and changes;

•    Dissemination of the world’s best practices in the field of agriculture on the territory of the republic.

 8. Zh.A.Khojaev, Deputy Prime Minister, and A.B.Voitov, Minister of Agriculture, to replenish the working capital of agricultural enterprises engaged in the cultivation of grapes.  The fund for Support of the Export of Horticultural and Greenhouse industries provide funds for economic development fund for 2 years, incl. 12 months grace period, in the amount of USD 10 million at the annual rate of 2%.

At the same time, the Government Commission for Foreign Trade, Investment, Local Industry Development and Technical Regulation determines the conditions
for the allocation of funds to vineyard agricultural enterprises.
 
 9. The Council of Ministers of the Republic of Karakalpakstan and regional governments together with the Ministry of Agriculture (Voitov A.), the Council of Farmers, Farmers, and Owners of Household Plots in the Republic of Uzbekistan (Hayitov A.) to review the content of this decision to hold presentations and awareness-raising seminars in each region.

10. The Information and Mass Communications Agency (Khojaev A.), the National Television and Radio Company of Uzbekistan (Khajaev A.), the National Information Agency of Uzbekistan (Kochimov A.) together with the Ministry of Agriculture (Voitov A.), Its goals and objectives are widely covered in the media.

11. The Court of Accounts (Turabov B.) together with the Inspectorate of State Financial Control under the Ministry of Finance, establish permanent control over the timely allocation and targeted spending of the funds provided for in this decision.

12. Some decisions of the President of the Republic of Uzbekistan should be amended and supplemented following the annex.

13. The Ministry of Agriculture, together with the relevant ministries and departments, within two months to submit to the Cabinet of Minister's proposals for changes and additions to legislative documents arising from this decision.

14. The Minister of Agriculture Voitov A.B., Director of the Horticulture Agency Karimov H.M., shall be personally responsible for the effective implementation of this decision, Director of the Agency for Neighborhood and Enterprise Development M.M.Ubaidullayev and Chairman of the Council of Ministers of the Republic of Karakalpakstan.  Governors must be appointed.

Deputy Prime Minister Ganiyev S.M. is responsible for discussing the implementation of the decision, and coordinating and monitoring the activities of the bodies responsible for implementation.