State subsidizes water preservation in agricultural sector

The size of subsidies to cover part of the costs of business in agriculture has been approved. In total, this year the budget will allocate over 1.1 trillion soums for these purposes.

Technology costs

The amount of the subsidy is determined by multiplying its base value by a coefficient set based on the quality level of the irrigation technology.

The base values are taken from the calculation for each hectare of sown area on which the corresponding system is introduced.

The quality factors are approved in the context of drip irrigation systems, sprinkling irrigation systems and discrete irrigation systems. More details can be found in the appendices to the document.

After the calculation, half of the amount is allocated in the year the system is implemented, the second – the next year, depending on the increase in productivity and equipment operation. Cotton-growing, grain-growing and horticultural clusters that have maintained high yields will receive an additional 20% in the third year.

Interest on loans

Agricultural producers are also reimbursed part of the interest expenses on loans for the purchase and construction of water-saving irrigation technologies.

The size and order in this case depend both on the system and the cultivated crop – cotton, cereals, vegetables, fruits, melons, grapes, etc.

Basic conditions

Subsidized systems must be used for at least 5 years. The lands on which they are installed are not subject to optimization for at least 5 years, they cannot be withdrawn without the consent of the land user and full reimbursement of costs.

Those who received subsidies last year, but have not yet managed to use the introduced technologies, must use them before the 2022 irrigation season. Otherwise, previously received subsidies will have to be returned to the budget.

In addition, subsidies will not be available to companies that are not included in the Tomchi-reestr, a unified electronic register of contractors who have performed high-quality work on the introduction of water-saving technologies in past years and “fully comply with the requirements of free competition”. The registry should be developed within a month, taking into account a number of criteria:

• the company has a production base;
• launch of own production or the presence of the status of an official dealer of the manufacturer;
• the level of tax risk, etc.

Until March 10, the Agro-subsidiya platform should be launched – a unified system for collecting, reviewing, coordinating materials on the allocation of subsidies to agricultural producers who have introduced water-saving technologies.

The state will also reimburse up to 50% of the cost of renewable energy sources and mobile generators for at least 10 hectares of cotton and grain fields (no more than 100 million soums). The order will be developed within 2 months.