Tashkent, Uzbekistan (UzDaily.com) -- On 11 May, President of Uzbekistan Shavkat Mirziyoyev held a meeting on an important stage of reforms in grain production.

Recently, food prices in world markets have been growing rapidly. Prices for 1 ton of wheat on international exchanges exceeded US$400, showing a 30% increase since the beginning of the year.

To achieve price stability, there is a need to introduce market mechanisms in the grain industry. In this regard, the meeting discussed issues of increasing supply in the market by ensuring the interest of farmers, increasing productivity.

In recent years, more than 160 large private bakery enterprises with a capacity of about 3 million tons have been put into operation in the regions. Last year, the country produced about 3.5 million tons of flour, of which 54 percent is accounted for by private grain enterprises.

The meeting criticized the inability of 43 grain enterprises of the Uzdonmakhsulot company to work effectively in the new market conditions. The inefficient use of production capacities, as well as cases of theft at state-owned grain enterprises that are still observed, were noted.

It is emphasized that the existing old system of operation of state grain enterprises does not benefit either grain producers or processing enterprises. It was noted that the time has come to take the next important step towards the long-awaited decision by the people and farmers of Uzbekistan - gradual abolition of the state order for harvesting and the creation of a real grain market.

The head of state said that from June 1, after the completion of all necessary organizational work, a transition to market prices will be made when the state purchases and sells grain.

The state will create all conditions for farmers and clusters to put their grain on the stock exchange. The price of 1 ton of wheat purchased for state needs will be increased from last year’s 1,550,000 soums to 3 million soums for this year’s harvest.

1 million 783 thousand tons of wheat purchased by the Fund of Agriculture will be put on the stock exchange based on the need. At the same time, farmers, based on the average prices formed on the stock exchange in July-August, will be paid a positive difference. This year, the state will allocate more than 6 trillion soums for these purposes.

In addition, 500 thousand tons of wheat, which will remain at the disposal of farmers, will be accepted for temporary storage of bakery enterprises, and from 1 July, for the first time, farmers and clusters will be able to independently put it up for sale at market prices. At the same time, the state will cover the costs of temporary storage of the indicated 500,000 tons of wheat. Farmers will also be exempt from exchange payments for the 2022 wheat crop.

The head of state instructed responsible persons to organize the registration of farmers and clusters that harvest grain on the exchange, assign brokers to them and train them in exchange trading.

About 7.6 trillion soums are allocated for this year’s grain harvest. In order for the new order to work fully, fairly and transparently, each sum will reach farmers and clusters in a timely manner and in full, and a system of daily control will be introduced to prevent price increases and product shortages.

“The real owners of grain are farmers and clusters,” the head of state said. - From now on, it is strictly forbidden to seize grain from farmers under the pretext of not fulfilling the plan in the area, the need for feed for livestock, poultry and fish farming. There will be no restrictions on the movement of grain sold through the exchange, the head of state said.

Credit resources in the amount of 800 billion soums will be allocated to replenish the working capital of Uzdonmahsulot and private enterprises.

The President instructed to increase the number of modern, compact, energy-efficient flour mills, expand areas for growing grain and increase their productivity, and introduce a system for compensating transportation costs for the delivery of flour and flour products to remote villages. Khokims of the regions were given their personal responsibility for preventing shortages in the market and ensuring price stability by importing flour and flour products from other regions of the country and from abroad.

The privatization of bakery enterprises will also accelerate. Responsible persons were instructed to sell state-owned shares in 20 grain enterprises by 1 August.

The agenda of the meeting also included issues of prevention of emergencies.

In March-May of this year, due to heavy rains in Bukhara, Jizzakh, Namangan, Samarkand, Surkhandarya, Syrdarya and Tashkent regions, there were about 15 major floods and landslides. As a result, 9 people died. 245 houses, 19 bridges were damaged, more than 450 heads of livestock were killed.

It was noted that this is also due to the fact that in areas with a high risk of floods and landslides, chaotic construction has been carried out for years, as well as indiscriminate irrigation.

The President instructed responsible persons to create round-the-clock headquarters and increase the number of rescue teams in the places where mountain rivers and streams flow, study the state of preparedness of river banks, reservoirs and flood protection facilities for emergency situations, and resettle residents from risk zones to safe areas.