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Uzbekistan in 2020 to significantly expand area of ​​fruit, vegetable clusters

Business Materials 13 December 2019 15:16 (UTC +04:00)
Uzbekistan in 2020 to significantly expand area of ​​fruit, vegetable clusters

BAKU, Azerbaijan, Dec. 13

By Fakhri Vakilov-Trend:

Uzbekistan’s President Shavkat Mirziyoyev signed a decree “On additional measures for the further development of horticulture and viticulture, the creation of a value chain in the industry,” according to which Uzbekistan will significantly expand the area under sweet cherry and nut in 2020, Trend reports with reference to legal information portal "Norma".

In 2020, cherry orchards will be planted on 7,000 hectares, walnut and peach - on 8,000 hectares, apricot and pomegranate - on 8,500 hectares, plums - on 2,500 hectares.

The decree established that greenhouses, intensive orchards and vineyards will be transferred to the population of Uzbekistan on leasing and credit.

The producer, the administration and the Ministry of Agriculture will be responsible for the creation of clusters for the production, processing and export of fruits and vegetables and grapes, on the basis of a tripartite agreement.

Cooperation relations between members of agricultural associations and participants in fruit and vegetable clusters will receive state support. The State Entrepreneurship Support Fund will provide compensation in part that exceeds the Central Bank's refinancing rate, but no more than 8 percentage points, or a guarantee of 50 percent of the amount of loans of up to $2.1 million allocated by commercial banks to create new gardens, vineyards and greenhouses.

It is planned to attract funds from international financial institutions for financial support of the production, processing and export of fruits and vegetables and grapes.

For five years, the zero rental rates is applied to the land occupied by walnut orchards (pistachio, almonds, walnuts) created on undeveloped land plots of the forest fund and leased in 2020–2021.

From January 1, 2020, as an experiment, the volume of production produced by locating types of vegetables and grapes in the respective regions is determined on the basis of calculating the normative soil productivity of orchards and vineyards in relation to one bonus point.

Currently, only 41 agricultural associations for fruit and vegetable growing have been created in eight districts of Jizzakh, Samarkand, Tashkent and Fergana regions.

The Ministry of Employment and Labor Relations and the Council of Farmers in Uzbekistan envisage the creation of 31 agricultural associations in 2021 to provide employment for low-income families in 22 districts of Fergana, Andijan and Namangan regions in 2020.

In total, 100 agricultural associations will be created in Uzbekistan with the involvement of funds from international financial institutions, the document says.

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