Farmers to receive 1 million soums subsidy per ton of cotton

The “critical 100-day program” was announced in Uzbekistan, starting from August 13. It was reported during a video conference chaired by President Shavkat Mirziyoyev on mobilizing export opportunities and resources in the textile sector.

The ideas of more than 200 entrepreneurs operating in the textile sector were heard based on the president’s directive.

“I have familiarized myself with the issues troubling them. I am going to present solutions. We are announcing the start of the ‘critical 100-day program’ in the textile sector from today,” the president said.

It was stated that measures will primarily be aimed at financially rehabilitating certain enterprises in deteriorating conditions and reducing production costs. Clusters will be allowed to extend their loan repayments for up to five years, on the condition that collateral is pledged this year. From now on, clusters that have pledged collateral will only pay the principal debt.

Moreover, the agricultural fund and the interest calculated by the banks will be collected only after the principal debt is fully repaid. In this way, the clusters can have circulating funds worth 800 billion soums. If the clusters pay the principal and interest on time, half of the interest paid to the fund will be returned to the entrepreneurs.

Clusters will also be exempt from 377 billion soums in penalties levied on loans issued for the 2022–2023 harvest by August 1. Measures will be implemented to rehabilitate 144 enterprises with $2.2 billion in commercial loan obligations. The loan terms of enterprises that can be stabilized will be extended up to seven years.

In addition, farmers will receive a subsidy of 1 million soums per ton of cotton for picking it on time without spoilage. If enterprises cultivate or purchase cotton using their funds, 10 percent of the product’s value will be covered.

Furthermore, the tax rate for enterprises in the textile sector chain has been set at 1 percent. In this case, the requirement for social registry will be abolished, and the required share of textiles in sales will be reduced from 90 percent to 70 percent.