According to the draft, the new association will be created based on Fat & Oil Association as its legal successor. Its members will include oil and fat, grain and flour, bread and pasta, meat and dairy, canned food, confectionery, soft drinks, and other food production and supply enterprises that voluntarily join the association.
The draft proposes granting customs duty exemptions to member enterprises of Food Industry Association until January 1, 2027.
Additionally, the association would be given the authority to introduce temporary export restrictions on certain types of oil and fat products based on market demand and price conditions. It would also be responsible for conducting seasonal technological audits to ensure enterprises are equipped with appropriate machinery and equipment.
Furthermore, the draft suggests that the Agency for Technical Regulation should establish dairy product laboratories and define their authorities. It also proposes introducing a mandatory digital labeling system for oil and fat products.
"Don't interfere"
Economist Otabek Bakirov expressed concerns that if the proposed association is established, it could turn into a "ministry" with administrative resources and authority.
“In the New Uzbekistan, the most rapidly growing sectors are public catering, retail, and the food industry.
This is because these sectors operate without a ministry, without government interference, without bureaucratic parasites, and without preferential privileges. Instead, there is a free market, strong competition, equal opportunities, technological innovation, industry growth, job creation, and increased tax revenue. Yes, there are also challenges.
So, don’t interfere. Don’t disrupt the market. That would be the best help,” the economist wrote.
"If a Ministry of Restaurants were created, the quality of restaurants would decline"
Economist Bekhzod Khoshimov previously argued that increased government intervention in economic sectors tends to do more harm than good.
“Tashkent is often praised for its excellent restaurants. However, there is no ‘Restaurant Ministry.’ I believe that if such a ministry were to exist, restaurant quality would decline.
During the Soviet era, there were trade and restaurant trusts. As a result, people neither bought quality goods nor ate well. If we had a Clothing Ministry today, we’d probably end up without clothes,” he said.
A similar association was dissolved five years ago
Until 2003, a similar organization, the Food Industry Association, existed in Uzbekistan. That year, it merged with the Oil-Fat Association to form the Oil-Fat and Food Industry Association. Later, the two sectors were separated again, leading to the creation of the Food Industry Enterprises Association.
The Food Industry Enterprises Association was dissolved in February 2016 and replaced by the Uzbek Food Industry Holding. However, this holding was also dissolved in September 2020.
According to a presidential decree, the main reason for its dissolution was that the holding performed redundant functions and did not systematically work with business entities. Its responsibilities were transferred to the Food Industry Development Main Department under the Ministry of Agriculture.
For reference, in September 2020, one month after the dissolution of Uzbek Food Industry Holding, a new Food Industry Association was officially registered in October. According to its website, the association has 144 members. Its founders are Class-Food-Servis, Murot Chokolate, Obid Fayz-BM, and Sladus Produce, each holding a 25% share.
