Uzbekistan renounced state order for cotton

Uzbekistan renounced state order for cotton

Starting from the 2020 crop, Uzbekistan will begin to abandon state regulation of the production plan, price and mandatory sale of cotton. In addition, the plan for the mandatory sale of grain will decrease by 25%. The relevant Decree was signed by President of Uzbekistan Shavkat Mirziyoyev.

According to the Decree, for development of the economy and the active attraction of investments, starting from the 2020 crop, the practice of setting a state plan for the production and mandatory sale of cotton and its price is canceled.

Under the Decree, in regions where there are no cotton clusters, voluntary cooperatives of farmers associations with the participation of ginning enterprises will be organized.

The purchase price for raw cotton will be liberalized due to abandoning the set prices. There will be an opportunity to freely use loans and freely choose service companies. Farmers’ economic benefits will increase. The structure of agricultural expenditures will be diversified with a focus on areas such as science and seed production.

Uzpakhtasanoat JSC will be liquidated. In particular, in accordance with the established procedure, equity stakes of regional joint-stock companies of Pakhtasanoat will be sold to cooperatives and business entities. Cotton will be freely traded at the Republican Commodity Exchange at the initial exchange price without a 10% discount off the initial exchange price.