On March 18, President Shavkat Mirziyoyev chaired a videoconference on increasing investment and exports in the agriculture and food industry.
Last year our country produced 23 million tons of fruit and vegetables, and the food industry produced products worth 86 trillion Uzbek soums.
It was estimated that US$5 billion of exports were possible, but because of mismanagement by ministers and hokims, as well as the unresolved problems of exporters, this figure did not exceed US$2 billion.
The meeting analyzed the structure and geography of exports. In particular, more than a dozen new markets, including Australia, New Zealand, Singapore, Columbia and Indonesia, have been opened over the past year, bringing the total to 85. Nevertheless, 80% of the exports goes to the markets of five countries, and ten types of products account for 60% of total exports of fruit and vegetables.
Every year, 700 billion Uzbek soums are allocated to support agricultural exports and 1 trillion Uzbek soums to increase production. However, the results are not commensurate with the efforts made. The potential of 1 million hectares of land released from cereal crops, 508 thousand hectares of home gardens and 260 thousand hectares of land distributed to the population has not been fully exploited. Some areas do not export fruit and vegetables at all.
The Head of our state expressed readiness to consider creating any necessary conditions for increasing agricultural and food exports in the current year.
Inflation control and currency stability are directly linked to exports. If we do not expand the conditions for exports along with the increase in production, the results will not meet expectations, said the Head of state.
The meeting was attended by representatives of exporting enterprises and logistics companies. The President held a dialogue with them and listened to their problems and initiatives. Support was expressed for the transfer of trading houses in Germany, Hungary, Poland, Spain, the USA, and Kazakhstan to the management of entrepreneurs, as well as the opening of trading houses in major port cities such as Nagoya, Mersin, Rotterdam, Qingdao, Klaipėda and Doha.
Recently, the first private laboratory with international accreditation was opened in the Agricultural Services Centre in Yukori Chirchik. This year, with an investment of US$8 million, similar modern laboratories will be launched in Zangiata, Fergana and Samarkand.
A reference laboratory will be established in Tashkent to ensure that private laboratories meet international standards. US$12 million, raised from the World Bank will be allocated for this purpose. In the future, internationally recognized reagents will be exempt from customs duty and will not require a mandatory environmental certificate.
Responsible officials have been instructed to ensure international accreditation of other laboratories, to study the national requirements of foreign countries for the quality of fruit and vegetables and to inform our exporters.
The need to revise the system of participation in international exhibitions was emphasized, the rating of entrepreneurs will be taken as a basis. Entrepreneurs with high and medium ratings will receive 100% of exhibition financing in advance, and those with low ratings will receive 50% compensation after providing proof of participation.
One of the problems faced by many export companies is the shortage of working capital. Therefore, this year, 1,5 trillion Uzbek soums will be allocated from the Business Development Bank for these purposes. The funds will be used to provide a preferential credit to the exporting company for up to 50% of the contract amount with the farmer and the warehouse. Loans will be issued at 18% interest rate with a grace period of six months up to 1.5 years.
As it is known, fruit and vegetable products spoil and lose quality faster than industrial products. Refrigerated containers will be brought for products requiring an optimal delivery temperature, such as fresh fruit, juices, confectionery and jams.
In order to reduce natural losses and spoilage of products, special attention should be paid to packaging. It is important to organize a modern enterprise and attract experienced designers to this direction.
A wide range of fruits and vegetables are grown in home gardens and sown land. Many suppliers buy them for cash and make them for exporters. From now on they will work as self-employed persons and are exempt from all taxes regardless of turnover.
The meeting also analyzed the opportunities in the food industry.
This year, it is planned to produce food products worth at least 100 trillion Uzbek soums and to export them worth US$1 billion, to launch 528 projects worth US$833 million under regional programs. A total of US$300 million has been allocated to banks to finance these projects. These measures will increase exports of ready-made food products to US$200 million.
On the basis of the issues discussed, it was decided to establish a commission on the export of fruits, vegetables and food, headed by the Prime Minister.
A three-year program will also be developed covering the entire cycle from cultivation to storage, packaging, processing and sales. Measures will be taken to support and increase the number of 2,362 agricultural exporting enterprises. Instructions were given to create a permanent platform for dialogue with exporters, where they will exchange information on available products in the regions, demand and prices in foreign markets.