Measures for the development of agricultural sectors were discussed

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On November 9, under the chairmanship of President Shavkat Mirziyoyev, a video conference was held on improving the activities of cotton and textile clusters, supporting and increasing the productivity of agricultural sectors.

The impact of the escalating situation and trade restrictions in the world is also felt in the domestic economy. In particular, these factors had a negative impact on the export of food and textiles. In this situation, the most correct way is to reduce the cost of production by increasing agricultural productivity, increasing investments in deep processing and creating added value, and increasing exports.

In this regard, the meeting discussed measures to support agriculture with new approaches, organizational and financial assistance. The Head of our state touched upon each industry separately and presented new proposals and initiatives.

According to the analysis, this year in 41 cotton and textile clusters the harvest exceeded 40 quintals, and in 9 - less than 30 quintals. In the Jizzakh, Kashkadarya, Namangan, Samarkand and Tashkent regions, due to low productivity and high cost, profitability did not exceed 10-11 percent.

There is also a positive experience. For example, in the Navbakhor cluster in Navoi region, a new foreign cotton variety yields on average more than 70 quintals of yield per hectare, the cost of which is almost two times lower than in the Jizzakh region.

Similarly, new approaches to the production of cotton seeds are indicated. Thus, in one of the districts of each region with a low bonus score, insufficient access to water and a yield of less than 30 centers, the import of cotton seeds with a yield of more than 70-80 quintals will be allowed. Planting of varieties with a yield of less than 30 quintals will also be stopped, with replacement with new high-yielding ones developed by seed institutes.

Another topical issue in the field is the violation of the discipline of mutual settlements between some clusters and farmers. 122 clusters have debts to the Agriculture Fund and farmers. 6 clusters were granted preferential loans, although they do not have production facilities.

Based on this, it was decided to introduce a new system for organizing clusters, organizing their interaction with farmers.

From now on, the newly created clusters will be required to have sufficient financial indicators, production facilities and equipment, they will be selected on the basis of an open competition. They will have to have at least two-stage processing.

Farmers will be able to enter into futures contracts with any cluster within the same region. They will also be able to sell part of the crop over the futures through the exchange.

Also, preferential loans in the form of a 60% advance on cotton cultivation for next year's harvest will be allocated directly to farmers.

Clusters will be financed through the purchase of grown cotton and the provision of funds for harvesting. Funds will be allocated separately for deep processing.

Responsible persons were instructed to establish a new procedure for financing clusters and farms, to settle accounts receivable and accounts payable between them. The need to transfer clusters to international financial standards was noted.

It is estimated that as a result of the complete processing of this year's cotton harvest in 2024, the production of industrial products will reach $ 9.6 billion, and exports - $ 4.5 billion.

In particular, projects have been launched to organize the production and painting of fabrics for $ 350 million in the Yukorichirchik district of the Tashkent region, the manufacture of artificial threads, fabrics and their painting for $ 60 million in Karakalpakstan. These enterprises will be launched next year and transferred to entrepreneurs on the terms of an industrial mortgage. They will create an opportunity to export products worth $ 1.5 billion.

In order to support the development of this industry, the President of the Republic of Uzbekistan signed a decree according to which a new system of support for textile, dyeing and clothing production will be created. In particular:

- enterprises that sell at least 50 percent of dyed fabrics to the domestic market pay a social tax at the rate of 1 percent;

- they are allowed to pay property tax in installments for 3 years;

- until January 1, 2025, 50 percent of transportation costs for the import of cotton and artificial fiber will be compensated;

- technological equipment and spare parts imported by textile and sewing and knitting enterprises are exempt from customs duty.

The President stressed the importance of using these opportunities to increase the number of projects and cover half of the infrastructure costs.

It is noted that 16 thousand hectares of orchards and 10 thousand hectares of vineyards have low productivity. This means that they lose at least 3-5 thousand dollars per hectare, an average of $ 100 million per year.

In this regard, a working group with the participation of agricultural specialists, tax authorities and statistics will be formed in each district under the leadership of the khokim, which will conduct an inventory of orchards and vineyards at least once a year. If they are found to be ineffective, the privilege exempting them from land tax will be canceled, the tax will be collected in full. Starting next year, differentiated land tax rates will be introduced for orchards and vineyards, depending on productivity and yield.

The tasks of growing food crops between rows in gardens and on household lands are also touched upon.

Today, poultry farming annually produces 690 thousand tons of meat and 8.7 billion eggs. Prices for these products have increased significantly in recent months. The problem with feed does not allow to reduce the cost of products. Therefore, it was instructed to organize 8 large granaries.

Another important issue: in our country there is no clean line of the parent flock of birds of the first order, as a result of which 3 million chickens have to be imported. Obtaining such a line will increase production by 3 times and reduce the cost of chicken by 10 percent. Most importantly, it will be possible to export hatching eggs and chickens for $50 million per year. In this regard, the task has been set to reach an appropriate agreement with US companies.

Instructions were given on the creation of livestock clusters in 25 districts, state support for milk production and processing enterprises. The issues of increasing fish production, construction of reservoirs based on the experience of Slovenia were also touched upon.

The meeting also analyzed the issue of financing the agricultural sector. It was noted that the funds raised from international financial organizations are not being fully used.

Although these funds are attracted for 20-25 years, banks allocate them to entrepreneurs for 5-7 years. The term of consideration of projects for granting a loan lasts up to one year. Due to the limited areas of use, these resources are of little interest to entrepreneurs.

Therefore, it is emphasized that these resources should be allocated on attractive terms for both banks and entrepreneurs. It was decided that the term of loans for agricultural projects will be extended to 15 years with a three-year grace period, and their consideration will be reduced to 2 months.

The Ministry of Agriculture has been instructed to organize an internal audit service for the targeted use of funds allocated by international financial organizations, the budget and banks.

It is also indicated that large retail chains do not create equal conditions for local producers, which affects competition and prices.

Special attention at the meeting was paid to the issue of ensuring budget revenues. It was noted that there are shortcomings in some districts and cities, the discrepancy in the amount of income to the growth of production, exports and investments in these regions.

It was emphasized that serious preparations have been made for the autumn-winter season, in connection with which the responsible persons are tasked with providing the regions with natural gas and streamlining the accounting of its consumption.