Uzbekistan supports cotton industry with new subsidies
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The Uzbek government announced new financial assistance for cotton producers and exporters in Andijan region, responding to decreased global demand and increased export costs.
Cotton clusters farming their own land will receive 1.5 million Uzbek soum per hectare as a direct subsidy. Officials also detailed plans to diversify land use, shifting some areas from cotton to livestock feed and establishing new fish and poultry farms in Ulugnor, Boston, Jalakuduk, Khojabad and Balykchi districts.
The government intends to maximize agricultural output per hectare by encouraging local processing of produce and creating regional brands. Agrostar, a new company, will work to cultivate 4,000 to 5,000 hectares of foothill land with orchards, eventually leasing the productive land to residents. They also plan to offer financial incentives to exporters through loan interest compensation and returns from online sales.
These measures aim to increase the proportion of locally processed produce to 30 percent and boost fruit and vegetable exports to $500 million, according to the presidential press service.
