Uzbekistan begins to subsidize the export of fruits, vegetables and nuts, which will make it more competitive


Uzbekistan begins to subsidize the export of fruits, vegetables and nuts, which will make it more competitive

05/05/2020

State support for exporters will help promote Uzbek products to new markets

Yesterday, May 7, 2020, the President of the Republic of Uzbekistan Shavkat Mirziyoyev signed a decree entitled: “On measures to further support export activities”, under which a mechanism for subsidizing the export of fruits and vegetables is launched.

According to analysts of EastFruit, this is a very timely decision, as export of cherries and apricots from Uzbekistan is now intensifying, and exporters have already faced the increased cost of transporting products and other difficulties caused by the coronavirus pandemic. We wrote more about this in the article “Sweet Cherry – An Analysis of the Prospects for the Season Considering the Situation in the EU, Russia and Central Asia.

What will be subsidized?

First of all, exporters will be returned 50% of transportation costs for the delivery of products by road and air. Prior to this, only export shipments were subsidized by rail, but this was not very effective, since deliveries by this mode of transport were rarely carried out and in small volumes.

Secondly, the Export Promotion Agency under the Ministry of Investment and Foreign Trade will compensate exporters insurance premiumif insurance is used as collateral. It is also a very useful tool to guarantee the financial security of supplies.

In addition, until the end of 2020 during the customs clearance of goods for export checking for debts is canceled on mandatory payments and executive documents for both legal entities and individuals, which will expedite and simplify export procedures.

From fruits and vegetables, the list of products subject to subsidization included the following products: tomatoes, cucumbers, garlic, cauliflower, salads (lettuce, iceberg, radicchio, oaklif, lollo-rossa and others), all kinds of fresh herbs, fresh sweet pepper and frozen, chilli peppers (bitter), all frozen vegetables, capers, dried vegetables, walnuts, almonds, lemon, fresh table grapes, dried grapes (raisins), watermelons, melons, apples, pears, fresh apricots and dried apricots, cherries, peach and nectarine, dried fruits of all kinds, dried, crushed first and pepper and peanuts.

Read also: Uzbek farmers received a detailed description of the GLOBALG.A.P certification.

Interestingly, there is no onion in the list. Perhaps onions, like potatoes, have been rated as strategically important commodities for domestic consumption – so far we have no official clarification on this issue. However, given the large volumes of onion exports from Uzbekistan in recent years and the development of its production, it is possible that this position will be listed later.

Export support is provided by the Export Promotion Agency, established under the Ministry of Investment and Foreign Trade of the Republic of Uzbekistan. The resolution notes that the conditions of increasing competition in world markets necessitate further expansion of state support for exporters to advance to new markets and strengthen their own positions in traditional markets by increasing the volume of exports.

“This is a very good and timely signal for both exporters of vegetables, fruits and nuts from Uzbekistan, and for importers of Uzbek products from Russia, Kazakhstan, Kyrgyzstan, Belarus, Ukraine, China, South Korea and other key buyer countries, indicating serious intentions countries for the development of production and export of fruits and vegetables. In addition to cheaper goods for end customers, it will also become a good reputation incentive for Uzbek exports. Such a solution shows that the country’s leadership understands one of the key problems in the development of Uzbek export of fruits and vegetables – remoteness from the main sales markets, and, as a result, expensive and complex logistics, ”said the economist at the investment department of the UN Food and Agriculture Organization (FAO) Andrey Yarmak.

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