Tashkent, Uzbekistan (UzDaily.com) -- President of the Republic of Uzbekistan Shavkat Mirziyoyev held a meeting on 4 February on the further development of clusters in agriculture.

The country is taking consistent measures to reform the agricultural sector and introduce market mechanisms and modern technologies. In particular, a cluster system has been established, and sowing crops have been diversified taking into account modern requirements. As a result, the productivity and income of agricultural producers are growing. Domestic products of more than 80 species are exported to 66 countries.

By the decree of the head of state from 23 October 2019, the Strategy for the Development of Agriculture of Uzbekistan for 2020-2030 was adopted. In accordance with this, in order to produce products with high added value fruit and vegetable clusters are organized. All organizational and legal bases for this are provided for in the relevant decree of the President from 11 December 2019. Over the past short time, khokimiyats have formed proposals on the organization of 86 such clusters.

The meeting provided information on the planned cluster capacities, their export potentials and the amount of attracted investments.

It was noted that the clusters provide for the implementation of 96 projects for the organization of processing, storage and drying of products with a capacity of 430 thousand tons. Projects have also been developed to create intensive orchards in 6 thousand and vineyards in about 8 thousand hectares. This year it is planned to export products worth US$410 million.

The Ministry of Agriculture has been instructed to organize the activities of clusters, the efficient placement of crops based on the conclusions of foreign experts, advance preparation of the necessary seeds and seedlings, and the Ministry of Finance to provide clusters with working capital.

The Uzbekoziqovqatholding company pointed out the need for continuous practical assistance to clusters in the search for new markets and export of products.

The meeting also discussed issues of improving the activity of cotton-growing clusters, phasing out the state plan for the harvesting of cotton and grain.

The head of state spoke about this in his Message to the Oliy Majlis on 24 January. “We will gradually move to the system of purchasing cotton and grain based on market principles, canceling the practice of the state order for the procurement of these products. If we don’t take this path, then our farmers and farmers will not be able to freely grow their products and will not receive the expected income, and the working methods of the khokims will remain the same,” said Shavkat Mirziyoyev.

This, along with a sharp reduction in state intervention in the sphere, will put an end to the khokims’ pursuit of the plan and cases of involvement in forced labor.

The cluster system is an important factor in the transition to market principles. To date, 73 cotton-textile clusters have been formed in Uzbekistan, last year their share amounted to 73 percent of the cotton crop grown. The average yield in such new formations was 4.1 centners more than in non-cluster lands; an additional 428 thousand tons of cotton was harvested.

The meeting was tasked with determining the legal status of clusters, introducing transparent mechanisms for their selection, and establishing relationships with farmers.

Organizational work was sharply criticized, including the fact that 27 clusters were allocated more cotton for harvesting cotton than they were able to cultivate, and some others that had facilities for harvesting 500 thousand tons of cotton fiber were not allocated enough space.

The President noted that when forming clusters, the main criteria should be the planned level of deep processing of raw materials and the amount of investment, the adequacy of funds for settlements with farmers.

It was emphasized that in the cotton fields not covered by clusters, farmers will cooperate. Ginneries will be handed over to farmers for the organization of cooperation, value added income will be distributed among farmers - members of the cooperation.

The ministries of agriculture and justice were given the task of specifically defining the responsibilities of clusters and farmers, and developing mechanisms for regulating their activities.

It is indicated that the current system for financing cotton harvesting is not entirely applicable to clusters. In this regard, it was entrusted to improve the financial support system for clusters and farmers.

The upcoming events in the current year and in the long term for canceling the state order and phasing out the mandatory placement of crops by 2023 are examined in detail.

Information on responsible persons was heard on issues discussed at the meeting.