$400 million has been allocated to increase mechanization in cotton harvesting.
On March 13, 2024, the President of Uzbekistan signed an important decree on modernizing the agricultural sector with advanced machinery. Zamin.uz reported this.
The main objective of this decree is to increase the level of mechanization in cotton harvesting operations, specifically by increasing the share of machine-harvested cotton. The government aims to ensure that at least 70 percent of the cotton crop is harvested using modern agricultural machinery by 2026.
This will reduce dependence on manual labor and contribute to increasing overall production efficiency. To implement the decree, the government has allocated up to 400 million US dollars through commercial banks.
These funds are obtained from foreign credit lines under state guarantee and are intended for purchasing modern machinery and equipment. This financial assistance enables farmers to update their machinery parks and implement efficient farming methods.
Furthermore, the decree authorized commercial banks to issue loans for purchasing agricultural machinery in national currency for a term of 10 years with a two-year grace period. Interest rates are set at the Central Bank's base rate plus a four percent bank margin.
These terms create more favorable financing opportunities for agricultural producers. The new rules simplify payments based on preferential loans or leasing contracts for cotton and grain harvesting machines.
Starting from 2026, payments will be made twice a year on January 31 and July 31. This system allows farmers to effectively manage their financial obligations while considering seasonal income and ensures the stability of the production process.
This decree is expected to encourage technological innovations in the agricultural sector and contribute to the stable development of the country's economy. The conditions created for farmers will help increase crop yields and strengthen export potential.
This, in turn, contributes to increasing overall national well-being.
