President Shavkat Mirziyoyev signed decree abolishing state regulation of prices, as well as the production plan and mandatory sale for cotton starting from the 2020 harvest.
To provide cotton producers with high-quality seeds, the system of supply of certified seeds will be maintained (including the current system for paying premiums for seeds). This will be carried out by seed clusters under the Center for Seed Development of the Ministry of Agriculture and cotton-textile clusters.
In provinces not covered by cotton-textile clusters, voluntary cooperatives will be formed with the participation of farmers in ginneries.
Waivers provided for cotton-textile clusters will be extended to cooperatives.
The decree cancels the 10 percent discount that was applied when setting the starting price for domestic-produced cotton fiber in commodity exchange.
The expected minimum crop prices for next year will be announced annually until December 1. They will be adjusted quarterly, based on changes in market prices.
Banks will also begin to provide loans for up to a year to purchase raw cotton and to finance the cost of collecting it.
Starting from the harvest of 2021, farmers will be able to independently make decisions on obtaining loans for the production of raw cotton (with the exception of areas where the land is completely covered by cotton-textile clusters).
The Ministry of Finance was instructed to allocate up to 700 billion soums to the State Fund for the Support of Entrepreneurship, as necessary, to cover part of the percentage of loans raised to purchase raw cotton and grain.
The decree is liquidating the Uzpakhtasanoat company. The blocks of shares of the provincial branches of the company should be sold to cooperatives and business entities.
Earlier, Shavkat Mirziyoyev said that the abolition of the state procurement of cotton and grain will result in the eradication of the “race to fulfill the plan”.
The abolition of the state plan for cotton and a 25% reduction in the plan for the mandatory sale of grain are provided for by the 2020 State Program.