According to the report of Norma, the Prime Minister of Uzbekistan signed a decree “On additional measures to further promote the cultivation of cereals”.

The document notes low yields and a number of other problems in the field of cultivating crops.

To improve the situation, the state-guaranteed price for the purchase of grain in 2019 has been set at 1.2 million per ton. This is 60% higher than it was set this year.

In addition, surcharges and discounts are introduced to the purchase price for grain depending on the yield per hectare of irrigated land:

•  30 centners and below – 25% discount;

•  31-40 centners – 15% discount;

•  41-50 centners – 10% surcharge;

•  51-60 centners – 20% surcharge;

•  61 centners and higher – 20% surcharge.

Moreover, it is envisaged to improve farm crediting. If farmers were given a loan in the amount of 60% of the delivery cost for delivering grain for state needs, this amount will increase up to 100% with the introduction of the new changes. The loan rate is 5% per annum.

Along with economic measures, the Government intends to stimulate yields through fiscal and administrative ways.

In particular, for farms and other agricultural enterprises planting crops, it is proposed to introduce in the parameters of the State budget for 2019, increasing coefficients for a single land tax for low yields per hectare of irrigated land:

•  at 30 centners and below – tax will increase by 2 times;

•  with a yield of 31-40 centners – 1.5 times.

Additionally, yields below 40 centners per hectare of irrigated land are recognized as “treason against the land”. This may entail consequences, including termination of the land lease agreement.