Uzbekistan sets state-guaranteed grain price for 2019 crop

Business Materials 28 November 2018 15:41 (UTC +04:00)

Baku, Azerbaijan, Nov. 28

By Fikret Dolukhanov – Trend:

Uzbekistan has set the state-guaranteed grain acquisition price for the 2019 crop at 1.2 million soums ($144) per ton, Uzbek media reported referring to the Resolution of the Cabinet of Ministers of Uzbekistan “On Additional Measures to Further Promote the Cultivation of Grain”.

For all grain crops, surcharges and discounts to the purchase price are introduced depending on the yield per hectare of irrigated land.

Improvement of farm crediting is also envisaged. According to the adopted order, a loan in the amount of 100 percent of the cost of delivery will be given when for the delivery of grain for state needs (including the cost of an advance seed supply by the procuring organization). The loan rate is 5 percent per annum.

Along with economic measures, the government intends to stimulate yields through fiscal and administrative means.

In particular, for farms and other agricultural enterprises that grow grain crops, it is planned to introduce increasing coefficients for a single land tax for low yields per hectare of irrigated land.

Moreover, yields below 40 centners per hectare of irrigated land will be considered “treason against the land”, which may lead to consequences, such as termination of the land lease agreement.


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