Parliamentary debate heats up over agricultural subsidy regulation

During the recent plenary session of Uzbekistan's Legislative Chamber, a heated debate took place over proposed amendments to the Law on State Duties, introduced in light of new market mechanisms in the agro-industrial sector.

The draft law proposes exempting the Agency for Agro-Industrial Development from state duty fees when filing lawsuits to protect the rights of fruit and vegetable producers, processors, and greenhouse farms.

However, this provision sparked strong objections from the People’s Democratic Party of Uzbekistan (UzPDP) faction. Lawmakers raised concerns that the agency, when attempting to reclaim misused subsidies through the courts, could create financial difficulties for farmers and lead to misunderstandings and disputes, contradicting the party’s core values and electoral interests.

MP Qizilgul Qosimova expressed concerns that the draft law fails to clarify whose interests it truly serves, urging a conceptual review of its provisions.

MP Anvarkhon Temirov argued that evaluating the effectiveness of subsidies for greenhouses requires a more nuanced approach, as such businesses do not generate stable profits within just one or two years. He emphasized that the agency itself should be responsible for monitoring subsidy allocation, rather than burdening recipients with legal disputes. According to Temirov, reclaiming subsidies deemed misused would contradict poverty reduction efforts and necessitate further revisions to the law.

MP Zuhriddin Mavlonov from the "Adolat" faction raised concerns that adding another entity to the list of those exempt from paying state duty fees could overload the court system.

"According to statistics, in 2023-2024, the Agency for Agro-Industrial Development filed only 22 lawsuits, of which 12 were upheld, while the remaining cases were dismissed. If this law is enacted, the number of such cases could significantly increase," he warned.

Following these discussions, UzLiDeP faction leader Aktam Khaitov supported passing the draft law in its first reading, with modifications to be introduced for the second reading. MP Ruslan Sobirov backed the proposal, arguing that it protects the rights of businesses operating in the agro-industrial sector.

This stance clashed directly with UzPDP faction leader Ulug‘bek Inoyatov, who pointed out that the lawmakers had already proposed revisions to the bill before its submission for the first reading, yet those recommendations had been ignored. He called for sending the bill back to its initiators for further refinement.

Committee Chair Ravshan Mamutov, responsible for agriculture and water management affairs, defended the bill, stating that it aims to enhance food security and ensure proper allocation of funds in the fruit and vegetable sector. He acknowledged certain shortcomings, particularly the agency’s overly broad powers, and assured that specific norms would be refined in preparation for the second reading.

Despite the objections, the bill passed its first reading with 32 votes against. The committee will now work alongside lawmakers and relevant stakeholders to address concerns and prepare the bill for its second reading, where discussions and refinements will continue.

Uzbek legislators emphasized the importance of healthy debates in parliament, noting that through open discussions, laws are perfected—ultimately benefiting the state, society, and voters.