Farmers often struggle not from poor harvests but from lack of initial funds

Key issues affecting agricultural exports were raised during an open dialogue with exporters at the Chamber of Commerce and Industry on July 18. At the event, a proposal was made to introduce a preferential financing mechanism for fruit and vegetable production in Uzbekistan.

Shukhrat Ergashev, founder of International Beverages Tashkent and representative of Samarkand Gardens Plast, highlighted that the Russian market consumes 1.3 million tons of frozen fruits and vegetables annually, while Uzbekistan exports only 30–40 thousand tons. According to him, one hectare of broccoli, cauliflower, or bell peppers can bring farmers up to 100 million soums in revenue.

Ergashev stressed that farmers often face a shortage of working capital during the growing season. He proposed a new system linking banks, farms, and processing plants. Under this model, banks would finance farmers, while factories guarantee product purchases at fixed prices, making it easier for banks to evaluate risks.

He emphasized that at the start of the season, farmers urgently need funds for taxes, fertilizers, fuel, agrotechnical work, and wages. To address this, he suggested banks provide loans while the state covers 30–50 percent of the interest rate.

Uzbekistan’s climate is favorable for crops such as broccoli, cauliflower, and bell peppers, which are in high demand in the Russian market. From one hectare, up to 10–15 tons of broccoli can be harvested.

“State subsidies should be treated as investments. It is necessary to analyze how much is allocated and what impact it has over 5–10 years,” Ergashev noted.

He also stressed the effectiveness of tripartite agreements between farmers, banks, and processing enterprises. Frozen product production is relatively stable, as it allows for several years of storage. For example, Egypt currently accounts for 90 percent of frozen broccoli and cauliflower exports to Russia.

Davron Vakhobov, chairman of the Chamber of Commerce and Industry, added that collateral remains one of the biggest obstacles for farmers. He suggested introducing agreements similar to cotton and wheat futures while having the state cover loan interest.