Uzbekistan to spend over $100M to cereals production

Business Materials 13 March 2018 14:24 (UTC +04:00)

Baku, Azerbaijan, March 13

By Fikret Dolukhanov – Trend:

Production of cereals in Uzbekistan will cost 1.24 trillion soums in 2018, the Uzbek Cabinet of Ministers said in its decree “On measures for wide promotion of market mechanisms in agriculture”.

According to the decree, the mentioned amount of guaranteed loan resources will be provided for goods, work, services and material and technical resources on state purchase of cereals in 2018.

Almost 60 percent of the amount will be spent on purchase of mineral fertilizers (more than 466 billion soums), combustibles and lubricants (more than 268 billion soums). Expenditures on wages are expected to reach 54 billion soums.

According to the document, the country establishes guaranteed prices for cereals purchase, what guarantees increase of profitability and promotes growing of high quality production. A ton of 3-grade soft wheat will cost 750,000 soums.

Previous reports said debt payments of farmers who grow cereals, are to be postponed for 3 years, according to the decision of the Uzbek president “On measures on substantial improvement of cotton and cereals production financing system”.

Also, a single tax rate of 2 percent was set for enterprises realizing mineral fertilizers to farmers until Jan. 1, 2019.

Phosphoric fertilizers, imported by entrepreneurship subjects and manufacturers of agricultural production, and raw phosphor material used for fertilizer production are exempted from the customs duties for the same period.

(8140.06 soums = 1 USD on March 13)