Farmers to receive expanded support as Uzbekistan reforms agrarian sector

This year, UZS 29 trillion has been allocated to support cotton and grain farming, procure agricultural machinery, and adopt water-saving technologies. Of this, UZS 2.35 trillion was directed to subsidies.

A key incentive, offering a 10% subsidy on cotton value for farms financing operations independently, encouraged 3,430 farmers and clusters to cultivate 151,000 hectares using their own resources. This approach resulted in state savings of UZS 1.9 trillion.

Looking ahead to 2026, authorities plan to allocate UZS 34.2 trillion for production, subsidies, and related expenditures. An additional $200 million in foreign funding will finance the purchase of 800 cotton harvesters. The presentation also examined new support mechanisms to further enhance efficiency.

Proposals for 2026 include an extra UZS 5 trillion for agrotechnical inputs, such as plastic film and flexible pipes. Farmers utilizing up to 50% of their credit limits could receive a 5% subsidy on sold cotton value, potentially expanding self-financed and partially credited farming to 4,000-4,500 participants and yielding savings of UZS 2.5-3 trillion. A similar 10% subsidy was suggested for wheat grown with private funds.

The discussion highlighted the role of the recently established Agency for Payments in the Agricultural Sector under the Ministry of Agriculture, focusing on fulfilling its mandate to improve support delivery.

Currently, agriculture benefits from 52 subsidy types. A new digitized system will simplify processes, minimize human intervention and bureaucracy, and shift all applications to the Agroportal platform. The Agrosubsidiya information system will integrate with databases from over 10 ministries and agencies.

In 2026, subsidies totaling UZS 1.3 trillion will be disbursed proactively without applicant involvement. Remaining subsidies will follow a streamlined procedure, eliminating redundant approvals and documentation to accelerate timelines.

President Mirziyoyev directed officials to refine financing mechanisms, ensure targeted and timely subsidy distribution, fully digitize operations, and create farmer-friendly conditions.