Uzbekistan sets up fund to finance public procurement of agriculture goods and equipment for agriculture

The fund is created in accordance with the decree of the President of Uzbekistan “On establishment of Fund of targeted financing of public procurement of agricultural products and equipment for agriculture sector with technologies under the Cabinet of Ministers of Uzbekistan” from 27 June 2017.

The decree was adopted in order to ensure stable development of agricultural production, increase yield of agricultural crops, form an integrated system for financing the cultivation of agricultural products for public procurement, as well as radically renew and equip the agricultural machinery complex of the agro-industrial complex with modern high-performance agricultural machinery.

The new fund is created on the basis of the Fund for settlements for agricultural products purchased for state needs under the Cabinet of Ministers of the Republic of Uzbekistan.

The Fund is the legal successor of all rights, obligations and contracts of the Fund for settlements for agricultural products purchased for state needs under the Cabinet of Ministers of Uzbekistan.

The fund will finance the payments for the cotton and grain crops grown for public procurement.

The decree said that the fund will issue loans to stimulate supply of preferential leasing conditions of modern high-performance agricultural machinery to farmers and other agricultural organizations involved in growing agricultural products for government purchases.

Uzbek President determined the main sources of financing of the fund and provided tax incentives.