Agriculture receiveshigh policy priority in Uzbekistan. The main objectives of Uzbekistan’sagricultural policy in recent years are to (1) maximize and stabilize exportrevenues from agricultural outputs, (2) redistribute revenue from agricultureto other sectors, and (3) improve rural standards of living.
Š The governmentmaintains control over all aspects of production including planted area,production targets, prices, inputs, procurement, and marketing.
Š The statefixes the area that farmers have to cultivate to produce cotton.
Š Before 2004, cottonfarms were state owned. In 2003 the government decreed that all state farmsduring 2004-2006 reorganize into private farms. By the beginning of 2006 morethan half of the existing state farms were reorganized into private farms.
Š The state providessubsidies for irrigation, fertilizer, seed, and financing.
Š Debts arewritten off based on special resolutions issued by the government. Most of thedebt write-offs are associated with collective farms being restructured.
Š Farmers interested ingrowing soybeans have been unable to obtain necessary land areas. State orders dictate that all good landareas be strictly devoted to wheat and cotton production.
Š The import tariff onoilseeds is 5%.
Š Zero tariff on importedraw and refined sugar.
Š The government ofUzbekistan has complete control on the planted area, production, and marketingof wheat, both in the domestic and international markets.