Agricultural subsidies in Uzbekistan will depend on yield and resource efficiency
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Podrobno.uz [uz]
podrobno.uz

Agricultural subsidies in Uzbekistan will depend on yield and resource efficiency

Uzbekistan plans to transform the state support system in agriculture starting next year. Subsidies will be tied to specific measurable indicators, such as yield, as well as the level of water and energy savings. If established criteria are not met, recipients may be required to return the received funds.

New approaches to supporting the agricultural sector were presented to President Shavkat Mirziyoyev on September 25. Currently, the industry operates with 29 directions and 91 types of subsidies, totaling 2.7 trillion soms annually. Furthermore, many workflows have already been digitized, and the timelines for application review and payment disbursement have been shortened.

It is proposed to move away from the previous model of simply allocating funds towards a 'results-based subsidy' system. When granting such subsidies, yield, the volume of produced goods relative to consumed resources, and the efficiency of water and energy use will be taken into account. Information for assessing these parameters will come directly from state information systems.

An electronic passport will be created for each beneficiary of the subsidy, allowing for online tracking of performance indicators. The first area where this updated mechanism will be tested will be water-saving technologies. An evaluation of changes in water consumption and yield levels will be conducted two to three years after receiving the subsidy; if target indicators are not achieved, the funds are subject to return.

Additionally, the development of agricultural insurance was discussed in detail at the meeting. A significant portion of procedures in this field is already carried out digitally through the Agrosafe system, covering the entire cycle—from application submission to contract signing and insurance payout. Plans include expanding the list of insured objects and risks to include seedlings, trees, and imported livestock, as well as developing new insurance products for animal husbandry, potatoes, onions, and melons.

The goal set for 2027 is to insure 45 thousand agricultural enterprises and bring the share of insured production to 60%. The preparation of 500 independent experts and the complete digitalization of insurance services are also planned. Special attention will be paid to risk prevention: it is proposed to allocate 3–5% of the insurance premium to a special fund that will be used for veterinary services, vaccination, biological protection, and installing protective measures in orchards and vineyards against natural threats.

The President emphasized the importance of ensuring the convenience of subsidization and insurance systems for farmers, as well as the transparency of state aid distribution. Responsible agencies have been instructed to refine existing proposals and prepare the necessary regulatory legal acts. It was previously reported that producers and processors of fruit and vegetable products, as well as greenhouse farms in Uzbekistan, will have the right to defend their interests in court through the Agency for Agro-Industrial Complex Development without having to pay state fees.

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