Uzbekistan allocates 300 billion soums to support agricultural producers

Uzbekistan will send 300 billion soums to support agricultural producers.

This is provided for by the Decree of the President of Uzbekistan “On additional measures to financially support the production of agricultural products.”

The funds will be allocated to the Horticulture and Greenhouse Development Fund. The Fund, in turn, will allocate funds to producers in the form of soft loans through commercial banks.

Loans will be allocated to agricultural enterprises – for the supply of seeds, fertilizers, fuel, plant protection products for growing fruits, grapes, potatoes, vegetables, melons, herbs and medicinal plants, legumes and oilseeds.

Credit funds can also be obtained by processing, storage and export enterprises to replenish working capital necessary for the purchase of produced crops.

At the same time, loans for growing crops are allocated in the amount of up to 150 million soums without collateral. Interest payments on loans are set at 14% per annum (including 3% bank margin) for up to 12 months with a grace period of up to 6 months.

Part of the funds up to 50% of the allocated amount of credit funds can be provided in cash at the request of the borrower. Funds from the Horticulture and Greenhouse Development Fund are accepted as collateral for allocated loans.

An insurance policy for insurance against the risk of non-repayment of credit funds or for crop risk insurance can be accepted as collateral for loans provided to crop producers and used to repay loans.

At the same time, 50 percent of the expenses of agricultural producers for crop insurance are covered by the State Support Fund for Agriculture.

The Ministry of Finance was instructed to ensure the allocation of the necessary funds from the State Budget of the Republic of Uzbekistan to the State Support Fund for Agriculture in order to cover 50 percent of crop insurance costs for crop producers for 2023 and subsequent years.