In accordance with the Presidential Decree of Uzbekistan dated November 22 of this year on "Measures to Fundamentally Improve the System of State Support in the Agricultural Sector," an Agency for Payments in the Agricultural Sector has been established under the Ministry of Agriculture to enhance state support mechanisms in the agrarian field.
During a presentation made to President Shavkat Mirziyoyev on the effective organization of financing for cotton and grain production and the new subsidy allocation system in the agricultural sector, the methods of carrying out the tasks assigned to this agency were reviewed.
Currently, 52 types of subsidies are allocated in agriculture. In the new system, this process will be fundamentally simplified, human involvement will be significantly reduced, bureaucracy will decrease, applications will be fully digitized, and the entire process will be carried out through the "Agroportal" platform.
For this purpose, the information system "Agrosubsidy" will be integrated with the information systems of more than 10 ministries and agencies.
Specifically, subsidies amounting to 1.3 trillion soums planned for 2026 will be proactively allocated by state agencies without requiring the participation of applicants. The remaining subsidies will be issued in a simplified manner, removing certain stages of approvals, conclusions, and document formalization, thus avoiding unnecessary complications. As a result, the time required for subsidy allocation will be significantly reduced.
The President of Uzbekistan gave clear instructions to further improve financing mechanisms, ensure the targeted and prompt allocation of subsidies, digitize all processes, and create favorable conditions for farmers.
For reference, this year, 2.35 trillion soums in subsidies were allocated to the sector. Notably, as a result of providing subsidies equivalent to 10% of the cotton value to farms that cultivated cotton using their own funds, 3,430 farmers and clusters produced cotton on 151,000 hectares with their own resources, saving 1.9 trillion soums.
Additionally, thanks to the opportunity to reimburse 4 percentage points of interest payments to farmers who fully repaid loans taken for cotton production by the end of this year, 9,002 farmers managed to repay a total of 2.5 trillion soums in preferential loans ahead of schedule.
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