A venture fund for the agricultural sector will be established in Uzbekistan

Shavkat Mirziyoyev reviewed a presentation on providing agricultural machinery and implementing modern digital technologies.

Currently, the level of mechanization in agriculture stands at 81%. Over the past few years, 1,756 cotton harvesters have been purchased, raising the mechanization level of cotton harvesting to 52%. In the last season, 2.1 million tons of cotton were harvested using machinery. This has allowed the volume of manual labor to be reduced by 1.8 times over the past five years.

The next goal is to increase the share of machine-harvested cotton to at least 70%. To achieve this, 800 cotton harvesters, as well as approximately 6,000 seeders, tractors, and combines, are planned to be purchased in 2026. In total, 10,000 units of machinery are expected to be acquired during the year, increasing the overall fleet to 292,000 units.

To provide new machinery to farmers under preferential terms, $400 million from international financial institutions is planned to be attracted. The machinery will be leased for up to 10 years at an annual interest rate of 18% in the national currency, with a two-year grace period. Of this, 8% of the interest rate will be subsidized from the state budget.

The presentation noted that the development of agricultural machinery manufacturing, expansion of domestic production, and service maintenance remain priority areas. In 2026–2028, the volume of domestic machinery and aggregate production is planned to increase fivefold, and the localization level is to be raised by 10%.

Thus, in 2026, production is planned to reach 6,000 units of machinery, and by 2028, the localization level for self-propelled machinery should reach 30–35%, and for mounted and trailed equipment, 60–65%.

The current subsidy system applies only to machinery with a localization level above 25%. In connection with this, it is proposed to introduce subsidies for the three most in-demand types of imported machinery as well. In total, in 2026, 660 billion Uzbek som are allocated to compensate for 15% of the cost of machinery.

Measures to support and improve the operations of the Tashkent Tractor Plant were also discussed separately.

Proposals were also presented for the development of modern banking services, the implementation of digital solutions, and artificial intelligence technologies in the agricultural sector. In particular, in 2025, the Agricultural Bank of Uzbekistan (AKB Agrobank) issued loans for agricultural machinery totaling 1.6 trillion Uzbek som. In 2026, this figure is planned to increase to 3.9 trillion Uzbek som. Automation of credit processes will reduce the application review time from three days to three hours.

Additionally, farmers will be provided with comprehensive services. In each region, one agro-service zone is planned to be established, where banking and consulting services, monitoring and soil analysis services, seedling delivery, agronomist consultations, and information on training courses will be available.

Plans for launching pilot projects using artificial intelligence in livestock farming, horticulture, and smart water resource management were also discussed. Special attention was given to the creation of a venture company with a charter capital of 100 billion Uzbek som to finance startups in agriculture.

As a result of the discussion, the head of state issued directives on further expanding agricultural mechanization, developing domestic production and service services, and improving monitoring and financial tools using digital platforms.

Source: president.uz