Uzbekistan to Expand Industrialized Orchards to Boost Agricultural Exports

Tashkent, The Gulf Observer: President Shavkat Mirziyoyev chaired a high-level meeting to discuss measures aimed at expanding industrialized intensive orchards across Uzbekistan’s regions as part of broader efforts to strengthen agricultural productivity, food exports, and rural incomes.

During the meeting, it was noted that Uzbekistan has been consistently implementing reforms to develop fruit and vegetable cultivation, increase export-oriented production, and improve livelihoods in rural areas. The country currently has 572,600 hectares of orchards and vineyards, generating annual exports worth approximately $1 billion and providing income opportunities for around 882,000 people.

President Mirziyoyev emphasized that, given limited land and water resources, future growth in the sector must focus on increasing productivity and profitability per hectare rather than merely expanding cultivated areas. Uzbekistan aims to increase food exports to $10 billion by 2030, with industrialized intensive horticulture expected to play a key role in achieving this target.

The meeting reviewed the condition of existing orchards and vineyards, revealing that 61,000 hectares of outdated orchards and 18,000 hectares of low-yield plantations require renewal. In some areas, such orchards yield only about five tons per hectare and generate annual income of less than 10 million Uzbek soums.

Special attention was given to the experience of the Pap district, where an 84-hectare export-oriented cherry orchard has demonstrated the effectiveness of intensive horticulture. Despite the trees not yet reaching full maturity, yields have already reached seven tons per hectare, while exported cherries are being sold at approximately $8 per kilogram.

To address inefficiencies, the government proposed introducing a new mechanism for managing outdated orchards and vineyards. Under the plan, the Agro-Industrial Development Agency will be authorized to assess and declare orchards unsuitable, paving the way for the establishment of industrialized orchards or the conversion of land into arable areas.

Authorities also proposed increasing land and water tax rates if industrial orchards are not established within 12 months, while continued noncompliance could lead to restrictions on water usage.

The President instructed officials to digitalize land-use oversight through an information system based on satellite imagery to monitor both old and newly established industrial orchards.

The meeting further highlighted support measures for households and farms seeking to renew orchards. Households will be eligible to receive up to 50 seedlings or loans of up to 2 million Uzbek soums through mahalla bankers, while farms may obtain loans of up to 150 million Uzbek soums for orchard renewal projects.

Over the next two years, Uzbekistan plans to establish 168,000 hectares of industrialized orchards and vineyards, attracting an estimated $2 billion in investment and creating approximately 258,000 jobs.

To support implementation, nine commercial banks will be assigned to specific regions to finance projects and provide entrepreneurs with technical, financial, and organizational assistance for up to two years.

A separate support system for entrepreneurs establishing intensive orchards will also be introduced through regional Agrostar companies operating on an equity partnership basis. Under the mechanism, Agrostar may contribute up to 50 percent of project capital in cash, while entrepreneurs contribute through land lease rights.

Entrepreneurs will be allowed to gradually buy out Agrostar’s share over seven years without revaluation. Banks will also provide loans of up to 120 million Uzbek soums per hectare for seven years, including a three-year grace period, at an annual interest rate of 10 percent. Timely repayments will qualify borrowers for compensation covering half of the interest costs.

Additionally, subsidies amounting to 5 million Uzbek soums per hectare over three years will be allocated to support orchard maintenance expenses.

The government also announced that entrepreneurs would be able to utilize Islamic financing instruments to acquire water-saving technologies, fruit seedlings, and agricultural machinery.

During the meeting, President Mirziyoyev approved proposals from entrepreneurs to introduce a zero VAT rate on locally grown and imported fruit seedlings and rootstocks, as well as a symbolic water fee of one Uzbek soum for five years for orchards using water-saving technologies.

The President instructed relevant officials to accelerate the renewal of inefficient orchards, expand export-oriented crop varieties, strengthen agri-logistics and processing capacities, and enhance cooperation among banks, regional administrations, and entrepreneurs nationwide.