Crop clusters in the country to be introduced gradually

On the portal of discussions of draft normative-legal acts, the Cabinet of Ministers approved the draft resolution “On additional measures to ensure high productivity through gradual implementation of the cluster system for grain production”.

The document envisages cooperation between the Ministry of Agriculture, the Ministry of Economy and Industry of the Republic of Uzbekistan, the Ministry of Finance, Council of farmers and landowners of Uzbekistan, JSC “Uzdonmakhsulot”, “Parrandasanoat” Association, “Uzbekbaliksanoat” Association, Council of Ministers of the Republic of Karakalpakstan, including the regional khokimiyats, which are in need of poultry farming, livestock breeding, fishery, and feed production and other cereal crops in 2019 for state needs procurement of cereal grains, that are more than contractual agreements, on futures contracts and separation of land areas in the coming years , can be approved by step-by-step introduction of “crop clusters”.

Together with the Ministry of Agriculture of the Republic of Uzbekistan, “Parrandasanoat” Association, the Association of “Uzbaliksanoat”, the Council of Ministers of the Republic of Karakalpakstan and regional administrations, the list of crop clusters, which will be established on the basis of the futures contract for the purchase of cotton fruits and vegetables, is confirmed.

This procedure ensures that the 2019 harvest will envisage:

For the state needs, cereals exceeding the contract for the supply of grain must be calculated at least at 1800 soums per 1 kilogram of grain sold by the farmers on the basis of the futures contract for "grain clusters";

Up to 60% of the product value (based on the terms of agro-technical activities) will be allocated from the farms on the basis of the futures contracts on "grain clusters";

In order to increase productivity by farmers, the advance funds allocated by the futures contracts will be used primarily to pay for mineral fertilizers, plant protection chemicals, fuel and lubricants and mechanization services; 

Final calculations for grains purchased under the futures contract by "grain clusters" shall be made within the terms specified in the contract, but no later than 60 days from the date of delivery;

Grains purchased under the futures contract are to be transported by "grain clusters" or transport-related costs are covered.

The Ministry of Agriculture of the Republic of Uzbekistan jointly with the Council of Farmers and Land Owners of Uzbekistan, JSC "Uzdonmahsulot", "Parrandasanoat" Association and "Uzbekbaliksanoat" Association will develop and execute a standard project of futures contracts for the purchase of grains.

Together with the JSC "Uzagrosugurta", the Council of Ministers of the Republic of Karakalpakstan, regional khokimiyats, futures contracts of cereal crops produced by farmers are made for insuring the harvest.

The JSC "Uzdonmahsulot" develops and approves dislocation of reserves for storage of grains purchased on the basis of futures contracts this year. It also provides practical assistance in conducting laboratory analyzes on contractual basis for measuring, identifying the sort and quality of cereal grains purchased by "grain clusters".