27.10.2021

Under the chairmanship of the President Shavkat Mirziyoyev the video conferencing on development of a cluster system in agriculture took place on October 27.

At the beginning of the meeting, Shavkat Mirziyoyev expressed gratitude to our people for support at the presidential elections and assured that all purposes and the tasks set in the election program will be realized.

In particular, big plans are defined in the agriculture. Within the next five years, it is envisioned to increase productivity at least twice, provide for deep processing of raw materials, bring up exports to 7 billion dollars, increase employment and the income of the population.

The leading role at the same time is assigned to clusters. For over a short time this system has created a basis for big changes. Therefore, in the cotton growing alone the processing of fiber increased to 2.5 times and reached 100%. Besides, production of yarn has doubled, finished goods - three times, their exports by the end of the year will reach $3 billion.

125 new enterprises with a full cycle of production with a total cost of $2 billion and 150 thousand permanent jobs are created.

The clusters brought more than 5 thousand units of the high-performance equipment, the water-conservation technologies on 126 thousand hectares are introduced.

Thanks to innovative approach the performance increases, as well. Many clusters this year have collected 35-40 centers of cotton from a hectare of land.

The President has emphasized the need to continue this work and expand the cluster 0pportunities to better performance in agriculture and agro-industrial complex.

At the election meetings on the ground, the farmers and peasants, heads of clusters have voiced many problems they face. These questions were systematized and there were developed proposals on their solution.

«The main problem is an outdated way of financing», - the President told. «It doesn’t conform to requirements of development of the industry. The cotton and textile clusters ask longer terms of crediting and the increased sums. Now the loans are granted to clusters for a period of 11 months. It takes not less than 24 months for cultivation and processing of cotton raw. Though preparation of the land for sowing begins in October, the credit is considered for 3-4 months and is allocated from January to February. This obsolete system will be completely changed now.

As it was noted at a meeting, now financing of preparation of cotton will begin from the beginning of an arable land – that is in October. From now on, the credits to clusters will be allocated for a period of 24 months, and their grace period will be increased from 11 to 18 months.

The cluster will repay the obtained loan after transformation of raw materials into finished goods - not earlier than, it will be processed into yarn or fabric. 10 trillion soums will be directed to introduction of this system from the budget. For this purpose until the end of the year 100 million dollars will be channeled in addition to the Fund of support of agriculture.

On such measures as increase in fertility and efficiency of soils, transition to new technologies of irrigation, protection of plants, creation of modern laboratories, training of farmers, financial grants for 1 million soum will be allocated for each hectare of cotton fields.

The Ministry of Finance and Central bank shall be instructed to introduce the specified system.

It is planned to increase the level of processing of yarn in clusters from present 50 up to 70 percent in the next two years. In this regard, the new mechanisms of support of clusters are announced.

Thus, on acquisition of the equipment for painting of fabrics and production of mixed fabric, the financial grants from the state depending on enterprise capacity, shall be provided. $150 million more will be allocated for crediting of such projects.

The new credit line with low rates of $100 million will be open by the state for support of export of the enterprises producing colored fabrics and finished goods. For clusters and other textile enterprises, which export not less than 80 percent of such goods, the rate of social tax is established at the level of 1 percent for a period of 3 years instead of present 12 percent. They will also be given an opportunity to pay a property tax with a three-year delay. Thanks to such measures, the enterprises will have in their possessions not less than 500 billion soums a year.

Yet another convenience – from next year the clusters will be given an opportunity to take the secured credits on cotton-raw and fiber.

At a meeting, the instructions on further strengthening the legal safeguards of activity of clusters are given.

It is well-known that transition to the market relations in production and sale of grain continues. The President noted that from next year the grain clusters and farmers will acquire the right to freely sell wheat at market prices.

At the same time, the clusters and farms will have to expose within 3 years 2.5 tons of grain from each hectare on the exchange auction and will be able to sell the rest of a harvest at their discretion.

The grain processing enterprises as part of «Uzdonmakhsulot» will be put up for auction to create the grain-growing clusters on their basis.

The responsible officials are instructed to make a full payment for the grain within two weeks.

The meeting has also discussed the measures on creating additional opportunities for fruit and vegetable clusters and cooperatives. The importance of preferential lending to these entities through the Agricultural support fund was stressed. In particular, the fund will allocate credit resources for the working capital of fruit and vegetable clusters at a rate of 10% for a period of 1 year.

Starting from next year, a competition will be held among insurance companies to insure vegetables and fruits from weather risks. For clusters and farmers with export contracts 50% of the insurance premium will be covered by the government.

It is planned to reduce 200 thousand hectares of low-yielding fields of cotton and grain. They will be provided to the population for long-term rent on a competitive basis.

The President has underscored the need to pay a special attention to low-income families, train them in farming and provide appropriate assistance.

To this end, the loans will be provided for fruit and vegetable projects for up to 100 million soums under the terms of the «Every family is an entrepreneur» program.

The Ministry of Agriculture has been instructed to provide infrastructure for fruit and vegetable clusters and processing enterprises, as well as to create the agro-logistic centers based on public-private partnerships.

The issue of modernization of agricultural machinery was also touched upon. To support farmers and clusters, starting next year, the payments on loans for the purchase of equipment in excess of 10% will be covered by the government.

In addition, the imported equipment, components and spare parts will be exempt from customs duties for a period of 3 years. As a result, clusters and farmers will be able to save up to 35% when purchasing equipment.

Along with this, it provides for the provision of benefits for laser leveling, planting of new disease-resistant varieties of crops, the development of seed production and the use of water-saving technologies.

In general, 25 billion soums are supposed to be allocated for these purposes annually.

The task was set to develop the draft decrees and resolutions on the implementation of the initiatives put forward at the meeting.