BAKU, Azerbaijan, March 24. Uzbekistan plans to allocate 6.2 trillion Uzbek soums ($544.7 million) for preferential loans for agriculture producers in 2023, Trend reports via the presidential administration.
The issue was discussed at the meeting, chaired by President of Uzbekistan Shavkat Mirziyoyev.
Thus, this funding will include not only the preferential loans, but also the direct financing of the purchase of seeds, seedlings, fertilizers and finished products.
Moreover, in the current year, 700 billion soums ($61.5 million) will be allocated from the Agricultural Fund to replenish the working capital of fruit and vegetable growing entities.
The Ministry of Agriculture will also distribute $130 million directly to entrepreneurs. For this, entrepreneurs will submit their projects for consideration through the transparent electronic platform of the Ministry. They will be able to repay 80 percent of the loan amount in installments within 10 years. The loan will be more accessible due to the absence of a bank surcharge.
The participants of the meeting also noted that $200 million raised from Japan International Cooperation Organization (JICA) will be allocated for the production and processing of food products.
It was also decided that silk clusters will be created in Uzbekistan by developing rain-fed and grazing land located near settlements. Based on the Vietnamese experience, the land will be allocated to the population for planting both mulberry trees and food crops of 1-2 hectares each. As a result, it will be possible to provide earnings for 2 million people and increase exports of the industry by $600 million.