On March 13, the President of Uzbekistan signed a significant decree aimed at modernizing the nation's agricultural sector through the widespread adoption of advanced machinery. The primary objective of this initiative is to enhance the level of mechanization across farming operations, with a specific focus on increasing the share of machine-harvested cotton. By 2026, the government aims to ensure that at least 70 percent of the cotton harvest is completed using specialized agricultural equipment, reducing reliance on manual labor and improving overall efficiency.
To support this ambitious transition, the government has allocated up to 400 million US dollars to be channeled through commercial banks. These funds, sourced from foreign credit lines under state guarantees, are specifically designated for financing the purchase of modern agricultural machinery and implements. This financial injection is expected to provide farmers with the necessary capital to upgrade their fleets and adopt more sustainable farming practices.
Furthermore, the decree introduces favorable lending conditions to encourage investment in new technology. Commercial banks are now authorized to provide loans in the national currency for the purchase of all types of agricultural equipment. These loans will be issued for a term of 10 years, featuring a two-year grace period. The interest rate for these loans is set at the Central Bank’s base rate plus a four percent bank margin, making the equipment more accessible to agricultural producers across the country.
The new regulations also streamline the payment structure for cotton and grain harvesters acquired through preferential loans or leasing agreements. Starting in 2026, the repayment schedule for these machines will be standardized, requiring payments to be made twice a year, specifically on January 31 and July 31. This structured approach is designed to align with the seasonal nature of agricultural income, ensuring that farmers can manage their financial obligations more effectively while maintaining the productivity of their operations.
Read “Zamin” on Telegram!
