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Uzbek Agriculture Sector to Receive US$60m to Finance Purchase of Machinery

3 August 2019

President of Uzbekistan Shavkat Mirziyoyev signed a resolution “On measures for the accelerated development of agricultural engineering, government support to the agricultural sector agricultural machinery”.

A program for the development of the agricultural machinery industry until 2025 will be developed. It will include:

- establishment of production of budget models of new types of agricultural machinery, the creation of a new national "brand" of agricultural machinery produced in the Republic;

- expansion of production of equipment for horticulture, horticulture, cattle breeding and increase in total production;

- increase in the share of exports of finished products compared to manufactured products to 20 per cent in 2022 and to 30 per cent in 2025;

- introduction of modern methods of corporate governance, in particular, the system of automated accounting “ERP”, production management system “GMS”, quality management system “BIQ”;

- organization of production of small-scale machinery for agriculture;

- optimization of existing equipment and vacant land areas of machine and tractor parks, their specialization mainly in the repair and provision of services.

The following procedure of state support of agricultural mechanization will be introduced:

- providing subsidies in 2019-2021 in the amount of 15 percent of the cost of equipment for the acquisition of agricultural machinery produced in the Republic, with a level of localization of at least 20 percent;

- compensation for 80 per cent of the transportation costs of combine harvesters for the provision of services abroad.

According to resolution, at the request of commercial banks, funds will be allocated in the equivalent of US$60 million in national currency at the expense of preferential credit lines to Finance the purchase of agricultural machinery of domestic production.

The resolution approved the list of professional colleges assigned to higher educational institutions in the areas of mechanization of agriculture, agricultural engineering, operation of agricultural machinery, technical service.

In these professional colleges, training is carried out for up to 2 years in full-time, evening and correspondence courses based on the complexity of professions and specialties.

The resolution also includes measures for training of specialists at higher educational institutions, including in foreign countries.