Part of diesel fuel costs to be covered by the state

Under a newly signed presidential decree, support measures have been introduced for cotton and wheat production in agriculture. The document also provides for partial compensation from the state budget for diesel fuel costs incurred by farms.

Cotton and wheat growers to receive financial support

A presidential decree “On additional measures to financially support cotton and wheat growers” has been adopted.

According to the decree, starting from the 2026 harvest, farms that repay preferential loans allocated for cotton production within the period specified in the contract will be compensated for 2.5 percentage points of the interest paid on these loans by the Agency for Payments in the Agricultural Sector under the Ministry of Agriculture. Farms that repay such loans by the end of the harvest year, by December 31, will be compensated for 5 percentage points of the interest payments.

In addition, farms that fully repay preferential loans allocated for wheat production costs by August 1 of the harvest year will be compensated for 4 percentage points of the interest paid on these loans. At the same time, the state will cover the portion of interest payments exceeding 8 percentage points but not exceeding 16 percentage points on commercial loans allocated to cotton-textile clusters, as well as textile enterprises with a cotton processing and yarn production chain, for the purchase of raw cotton.

Subsidies to be allocated to some agricultural enterprises

According to the decree, in order to partially cover costs related to the purchase of diesel fuel, agricultural enterprises will receive subsidies through the Agency from the republican budget for diesel fuel bought through the exchange between April 1 and July 1, 2026. The subsidy will cover the portion of the cost of each ton of diesel fuel exceeding 13 million soums, but will not exceed 2 million soums.

At the same time, from September 1, 2026, the authority of the Fund for State Support of Agriculture to allocate the following subsidies to farms will be transferred to the Agency:

• compensation for part of the value of electronic invoices issued when agricultural entities sell raw cotton grown using their own funds or commercial bank loans on the exchange;
• compensation for part of the cost of raw cotton purchased with the own funds of cotton-textile clusters and textile enterprises with a yarn production chain.

Earlier, it was reported that only local farmers and entrepreneurs would be allowed to participate in auctions for obtaining agricultural land in Uzbekistan.

Oybek Rustamov.