04.02.2020

On February 4, President of the Republic of Uzbekistan Shavkat Mirziyoyev held a meeting to discuss the state of affairs in the development of agriculture clusters.

Steadfast measures are taken in the country to reform the agricultural sector and introduce market mechanisms and modern technologies into the sphere. In particular, a cluster system has been launched, and the practice of sowing crops been diversified with an eye to modern requirements. As a result, the productivity and incomes of agricultural producers are on the rise. Domestic goods of more than 80 types are exported to 66 countries.

The Agriculture Development Strategy of Uzbekistan for 2020-2030 was approved with a presidential decree on 23 October 2019. In accordance with that, fruit and vegetable clusters are being set up in order to produce goods with high added value. All organizational and legal bases for this are provided for in a relevant 11 December 2019 decree of the head of state. Over the past short period of time, hokimiyats have elaborated proposals to establish 86 such clusters.

The meeting participants provided information on the projected cluster capacities, export potentials of those entities and the amount of investments to be drawn.

Through clusters, it was noted, 96 projects are envisaged to be implemented for the organization of processing, storage and drying of products, with a capacity of 430 thousand tons. Schemes developed also include those designed to house intensive orchards in 6 thousand hectares and vineyards in about 8 thousand hectares. This year it is planned to export goods worth $ 410 million.

The Ministry of Agriculture has been instructed to organize the activities of clusters, to place crops efficiently proceeding from the conclusions of foreign experts, and secure advance preparation of essential seeds and seedlings, while the Ministry of Finance has been tasked with providing clusters with working capital.

The Uzbekozikovkatholding was entrusted with providing continuous practical assistance to clusters in issues of finding new markets, exporting products.

The meeting participants also discussed improvement ways in the work of cotton-growing clusters, in phasing out the state plan for the harvesting of cotton and grain.

The President spoke about that in his Address to the Oliy Majlis on January 24. “We will gradually shift to the system of purchasing cotton and grain based on market principles, abandoning the practice of state procurement of these products. If we do not take this path, our farmers and dehkans will not be able to freely grow their crops and receive the expected income, while working methods of hokims will remain the same,” Shavkat Mirziyoyev said back then.

This, along with a sharp reduction in government intervention in the sphere, will put an end to the hokims’ pursuit of the plan and cases of forced labor.

The cluster system is an important factor in the transition to market principles. To date, 73 cotton-textile clusters have been launched in Uzbekistan, and last year their share amounted to 73 percent of the cotton crop grown in the country. The average yield in such new entities was 4.1 centners more than in non-cluster lands; an additional 428 thousand tons of cotton was harvested.

The President suggested that legal status of clusters be defined, transparent mechanisms for their selection be introduced, and relationships with farmers established.

Organizational work was sharply criticized, including the fact that 27 clusters had been allocated more cotton for harvesting than they were able to cultivate, and some others wielding facilities for harvesting 500 thousand tons of cotton fiber were not assigned enough space.

The head of our state noted that when forming clusters, the main criteria should be the projected level of deep processing of raw materials and the amount of investments, the adequacy of funds for settlements with farmers.

It was emphasized that in the cotton fields not covered by clusters, farmers will cooperate. Ginneries will be handed over to farmers for the organization of cooperation schemes, value added income will be distributed among farmers – members of these associations.

The ministries of agriculture and justice were tasked with defining clear-cut the responsibilities of clusters and farmers, and with working out mechanisms for regulating their activities.

Shavkat Mirziyoyev indicated that the current system for financing cotton harvesting is not entirely applicable to clusters. In this regard, it was entrusted to improve the financial support system for clusters and farmers.

The upcoming events in the current year and in the longer term for forsaking the state order and phasing out the mandatory placement of crops by 2023 have been examined in detail.

Responsible officials presented reports/ heard on issues discussed at the meeting.

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