The Cabinet of Ministers of the Republic of Uzbekistan adopted the Resolution “On additional measures to support the activities of raw cotton producers” No. 23 dated January 26, 2023 (the “Resolution No. 23”).
The Resolution No. 23 categorically prohibits unlawful interference by state authorities in the activities of clusters, involving their founders in meetings and influencing relations with farmers.
In accordance with the Resolution No. 23, starting from the 2023 harvest:
- every year until October 1, cotton-textile clusters will conclude futures contracts with farms for the cultivation of raw cotton for the next year’s harvest;
- the loans in the amount of 60% of the cost of raw cotton will be allocated to finance the cost of growing raw cotton;
- material resources will be delivered without markups (excluding shipping costs for delivery). In this case, advances will be made in the form of monetary and material resources.
In addition, the Resolution No. 23 defines the principles of import from abroad and the provision of tests for the purposes of selection and testing of the most productive varieties of cotton.
According to the Resolution No. 23, starting from 2023, agricultural producers who purchase automated land-planning units with a laser installation will be covered 30% of their cost from the State budget. Moreover, 50% of the cost of electricity used for irrigation will be covered too.
The Resolution No. 23 abolishes customs duties for mineral fertilizers imported before January 1, 2025 and determines the amount of mandatory deduction in the amount of 0.6%.