Plans for financing and subsidizing the agricultural sector were considered

President Shavkat Mirziyoyev reviewed the presentation on the effective organization of financing for cotton and grain growing, as well as the new system of subsidizing the agricultural sector.

At the beginning of the presentation, information is provided on the funds allocated to the industry this year and their effectiveness.

As noted, 29 trillion soums were allocated to finance cotton and grain growing, the purchase of agricultural equipment and the introduction of water-saving technologies. In addition, 2.35 trillion soums of subsidies were allocated to the sector.

The allocation of subsidies in the amount of 10 percent of the cost of cotton to 3,430 farms and clusters allowed them to grow cotton at their own expense on 151 thousand hectares, thereby saving 1.9 trillion soums of resources.

In addition, farmers who fully repaid loans for growing cotton this year were given the opportunity to reimburse 4 percentage points of payments, thanks to which 9,002 farmers repaid early soft loans worth 2.5 trillion soums.

A total of 34.2 trillion is planned to be allocated for the cotton and grain harvest, subsidies and other expenses next year soums In addition, it is planned to raise an additional $200 million for the purchase of 800 cotton picking machines. In this regard, new support mechanisms have been considered.

In particular, it is proposed to allocate an additional 5 trillion soums in 2026 for agricultural activities, including costs for film and hoses. It was noted that by allocating a subsidy in the amount of 5 percent of the cost of sold cotton to farmers who used 50 percent of the loan limit for growing crops, the number of farmers growing crops at their own expense and partially with loans will reach 4-4.5 thousand, they will be able to save 2.5-3 trillion soums.

Now, when providing loans to farmers, the same interest rate is applied to both financially stable farms and those who do not comply with payment discipline. In this regard, to implement the “discipline - cheaper loan” model, farms with a credit rating of “A” are proposed to provide loans with a rate reduction of 2 percent, and category “B” - with a reduction of 1 percent, which will reduce the burden on farmers who regularly pay the loan.

In addition, it is proposed to allocate a subsidy in the amount of 10 percent of its cost.

As the head of our state noted, stimulating farmers, strengthening their confidence and economic interests is a key pillar of the development of agriculture, therefore the mechanisms for supporting the agricultural sector will be consistently expanded.

According to the Decree of the President of Uzbekistan “On measures to radically improve the system of state support for the agricultural sector” dated November 22 of this year, to improve the mechanisms of state support In the agricultural sector, the Agency for Payments in the Agrarian Sector was created under the Ministry of Agriculture.

During the presentation, the issue of organizing the implementation of the tasks assigned to the agency was considered.

Currently, 52 types of subsidies are allocated in agriculture. In the new system, this process will be radically simplified: the human factor and bureaucracy will be significantly reduced, the consideration of applications will be completely digitalized and all procedures will be carried out through the Agroportal.

For this purpose, information systems of more than 10 ministries and departments will be integrated into the Agrosubsidy information system.

In particular, subsidies amounting to 1.3 trillion soums, provided for 2026, will be provided proactively by government bodies without the need for the participation of applicants, and the rest will be provided according to a simplified procedure by eliminating individual stages approval, issuance of conclusions and execution of documents. As a result, the time frame for providing subsidies will be significantly reduced.

The head of state gave specific instructions to further improve financing mechanisms, ensure targeting and efficiency of subsidies, digitalize all processes and create favorable conditions for farmers.