Uzbekistan is reforming its agricultural subsidy system to meet long-term goals and align with its WTO membership negotiations. The aim is to make the subsidy system more efficient, transparent, and market-driven, supporting sustainable agricultural growth, food security, and environmental protection. This announcement was made during the first Uzbekistan Country Platform Roundtable of the year in Tashkent on February 25.
Findings from the agricultural subsidy assessment
A joint study by the European Union (EU), the Asian Development Bank (ADB), and Uzbekistan’s Ministry of Agriculture highlighted key issues in the current subsidy system. Over 93% of subsidies go to cotton and wheat production. The system needs to be more flexible and target high-value crops like fruits and nuts, which have better profitability potential.
Ambassador of the European Union to Uzbekistan, Toivo Klaar, highlighted that the assessment shows that «Uzbekistan needs a more strategic approach to agricultural subsidies, to ensure that these are effective in driving reforms and efficient in their implementation. The aim should be to have these subsidies directly contribute to the development of a market-driven, internationally competitive, diverse, environmentally friendly, climate resilient and socially inclusive agri-food sector.»
Meanwhile, the study found inefficiencies in how subsidies are distributed. The recommendation is to streamline the application process, improve targeting, and ensure timely advisory support for beneficiaries.
Recommendations for improving the subsidy system
The report calls for a unified digital system to manage subsidies, reducing bureaucracy and improving transparency. The creation of a central paying agency would help coordinate subsidy distribution, improve efficiency, and track financial flows.
Better coordination among the Ministry of Agriculture, the Ministry of Economy and Finance, and other bodies is needed. This will ensure that subsidies are managed effectively, payments are timely, and the subsidy system is more responsive to farmers’ needs.
Policy and legal enhancements
To make the subsidy system sustainable, Uzbekistan needs to create a consistent policy framework that balances food security, climate resilience, and rural income enhancement. This framework will guide future subsidy planning, ensuring it aligns with strategic objectives and market opportunities.
Additionally, legal and regulatory adjustments are necessary to support these reforms. Clear guidelines will help ensure that subsidies are distributed efficiently and effectively.
