Mirziyazoyev orders expansion of intensive orchards network

Tashkent, Uzbekistan (UzDaily.com) — President of Uzbekistan Shavkat Mirziyoyev has chaired a meeting dedicated to measures to expand areas of industrial-scale intensive orchards and improve the efficiency of land and water use in agriculture.

During the meeting, officials noted that Uzbekistan is consistently implementing measures to develop horticulture and vegetable production, increase output of export-oriented goods, and raise rural incomes. The country currently has 572.6 thousand hectares of orchards and vineyards, generating about US$1 billion in annual exports. The sector employs 882,000 people.

It was emphasized that, under conditions of limited land and water resources, further growth must come not from expanding cultivated areas, but from increasing yields and profitability per hectare. Uzbekistan aims to raise food exports to US$10 billion by 2030, with intensive industrialized horticulture expected to play a key role in achieving this goal.

The meeting reviewed the current condition of orchards and vineyards. It was noted that 61,000 hectares of outdated orchards and another 18,000 hectares of unproductive orchards require renewal. In some regions, yields in such areas do not exceed 5 tons per hectare, with annual income below 10 million soums.

Pap district was cited as an example, where 1.2 thousand hectares of old and inefficient orchards are located. Experts estimate that replacing them with intensive orchards using export-oriented varieties, along with agro-logistics centers for drying, sorting, and packaging, would significantly increase profitability.

An example was also given of an intensive cherry orchard covering 84 hectares, where young trees already yield up to 7 tons per hectare, while export prices reach US$8 per kilogram.

In this context, a new mechanism for handling outdated orchards was proposed. The Agency for the Development of the Agro-Industrial Sector will be authorized to declare orchards and vineyards unsuitable and issue conclusions on establishing industrial intensive orchards in their place or converting plots into arable land. If no new orchard is established within 12 months, land and water tax rates will be increased. If the situation continues for another year, water withdrawal may be restricted.

The President also instructed the introduction of a digital monitoring system for old and newly established industrial orchards using satellite imagery.

Special attention was given to renewing orchards on household plots and in farming households. Households will be provided with up to 50 seedlings or concessional loans of up to 2 million soums through community bankers. Farms will be eligible for loans of up to 150 million soums for orchard renewal.

Between 2026 and 2028, Uzbekistan plans to establish 168,000 hectares of industrial-scale intensive orchards and vineyards. The program is expected to attract around US$2 billion in investment and create 258,000 new jobs.

Nine commercial banks will be assigned to regions to support the projects. These financial institutions will not only provide loans but also accompany projects for two years in agronomic, financial, and organizational aspects.

The meeting also approved a mechanism allowing the company Agrostar to participate in orchard projects on an equity basis, financing up to 50% of charter capital, while the entrepreneur’s share will be formed through land lease rights.

Entrepreneurs will be allowed to gradually buy out Agrostar’s stake over seven years at a fixed valuation. Authorities expect this model to increase incentives for owners of old orchards to modernize their farms.

Banks will be able to provide concessional loans of up to 120 million soums per hectare of intensive orchard. If loans are repaid on time, half of the interest rate will be compensated by the state. In addition, subsidies of 5 million soums per hectare will be allocated for three years to cover maintenance costs of industrial orchards.

Islamic financing will be made available for purchasing water-saving technologies, seedlings, and agricultural machinery.

The President supported proposals from entrepreneurs to introduce a zero VAT rate on cultivated and imported seedlings of fruit crops and rootstocks. An initiative was also approved to set the water fee from wells at 1 som for five years for orchards equipped with water-saving technologies.

Following the meeting, relevant agencies were instructed to accelerate the renewal of inefficient orchards, prepare concrete projects for industrial intensive orchard development, and further develop export-oriented varieties, agro-logistics, and processing capacities across the regions.