Reforms in the agricultural sector of Uzbekistan and the process of digitalization of this field

TEHRAN (Iran News) The prospects for development, the economic and financial condition of many industries of the republic, such as cotton ginning, textile, light, food, chemical industries and others, and this is about half of the entire industrial potential, directly depend on agriculture. Many researchers emphasize the importance of the development of this sector and its impact on socio-economic growth in general. So, for example, FAO researchers came to the conclusion that growth in agriculture, more than in any other sector of the economy, can reduce poverty by playing the role of a multiplier.

Since the first days of independence, the Republic of Uzbekistan has been consistently implementing a well-thought-out strategy for the development of agriculture, aimed at ensuring the food security of the country.

In 2017, a new direction appeared in the agriculture of Uzbekistan – the “Cluster System”. Clusters of various directions are developing: cotton-textile, horticultural, seed-growing, cereals, meat, dairy and etc. The main goal of creating clusters is to form a single chain that unites all processes for the production of finished products – from growing raw materials to processing and manufacturing the final product . Of course, it is worth noting that this system is only being established and there are problems in certain links of the chain, but the prospects for its further development will make it possible to most effectively use the production potential of agriculture in Uzbekistan.

Also, since 2017, the process of transforming farms into diversified ones has begun to take place actively.

A “diversified farm” is a farm that, along with the production of agricultural products, is engaged in the processing, storage and sale of agricultural products, industrial production, performance of work, provision of services and other activities not prohibited by law. The creation of diversified farms is the main factor in ensuring a stable social and economic situation in rural areas, enriching the markets of the republic with the necessary consumer goods and services. Based on the large-scale development of diversified farms, it is possible to partially solve an acute social problem – ensuring permanent employment for the population.”Reforms in the agricultural sector of Uzbekistan and the process of digitalization of this field”

In 2019, the “Strategy for the Development of Agriculture of the Republic of Uzbekistan for 2020-2030” was approved, which covers the following strategic priorities: ensuring food security of the population; creation of a favorable agribusiness climate and value chains; reducing the role of the state in managing the sphere and increasing investment attractiveness; ensuring the rational use of natural resources and environmental protection; development of modern public administration systems; phased diversification of public spending in support of the sector; development of science, education, systems of information and consulting services in agriculture; rural development; development of a transparent system of sectoral statistics. Within its framework, it is planned to achieve the following main indicators by 2030:

• development of 1.1 million hectares of agricultural land, increasing the efficiency of the use of 535.6 thousand hectares of rainfed, pasture and other lands;
• growth of average labor productivity in agriculture by 1.7 times (up to 6.5 thousand dollars per employee per year);
• increase in the rate of processed products up to 30%;
• increase in exports up to 20 billion dollars.

Separately, it is worth dwelling on the process of reforming the liberalization of exports of fruits and vegetables.

In June 2017, at the initiative of President Sh.M.Mirziyoyev, Uzagroexport JSC lost its monopoly on the supply of fruits and vegetables abroad. As a result, from July 1, 2017, business entities were allowed to export fresh fruits and vegetables, grapes and gourds on the basis of direct contracts on the terms of 100% prepayment and mandatory sale of 25% of their foreign exchange earnings. The last requirement was canceled in July 2017 in order to further stimulate national exporters.

The practice of setting by JSC “Uzagroexport” the recommended minimum prices for concluding export contracts was initially wrong. As a result of JSC “Uzagroexport” not allowing farmers to sell crops below the established prices, the products were often simply thrown away. In August 2018, the President of Uzbekistan Sh.M.Mirziyoyev made the right decision to cancel this practice and it was allowed to conclude export contracts for fresh and processed fruits and vegetables at prices lower than those published by JSC “Uzagroexport” with the corresponding invoice during customs clearance.”Reforms in the agricultural sector of Uzbekistan and the process of digitalization of this field”

The next step to improve the efficiency of promoting fruit and vegetable products to foreign markets was to allow legal entities to export without prepayment, open a letter of credit, issue a bank guarantee and an insurance policy against political and commercial risks under an export agreement, in accordance with the procedure established in October 2018.

Government headed by the President of the Republic of Uzbekistan Sh.M.Mirziyoyev created an unprecedented system of support for exporters of fruits and vegetables, which did not exist before in Uzbekistan.

In particular, the State Fund for Supporting the Development of Entrepreneurial Activities began to provide exporters with compensation to cover interest expenses on pre-export loans from commercial banks, incl. issued to replenish working capital, up to the refinancing rate of the Central Bank of the Republic of Uzbekistan. Also, exporters began to be provided with guarantees for loans from commercial banks in the amount of up to 50% inclusive of the amount of the pre-export loan, but not more than 4 billion soums.”Reforms in the agricultural sector of Uzbekistan and the process of digitalization of this field”

Digital technologies in the agricultural sector of Uzbekistan.

Today, digital technologies come to the aid of farmers and agronomists in agriculture. Big data and its analysis help to determine the favorable time for planting or harvesting, calculate the fertilizer supply scheme, monitor, predict the harvest and much more.

Digital technologies allow to control the full cycle of crop production. Smart devices measure and transmit soil, plant and microclimate parameters. The data received from sensors, satellite images, drones, weather stations and other equipment form Big Data and are analyzed by special applications, placed on the geoportal.

As elsewhere in the world, Uzbekistan is also implementing comprehensive measures to actively develop the digital economy, as well as the widespread introduction of modern information and communication technologies in agriculture.”Reforms in the agricultural sector of Uzbekistan and the process of digitalization of this field”

By the Decree of the President Sh.M.Mirziyoyev “On approval of the strategy “Digital Uzbekistan-2030” and measures for its effective implementation”, several dozens of projects aimed at the development of the agro-industry were identified.

In particular, in December 2020, the “Smart Agriculture” technology development strategy and the “Action Plan for the implementation of the Smart Agriculture technology development strategy in the period 2021-2023” were approved, providing for four main areas:

– digitalization of agriculture;

– automation of management and monitoring processes;

– support for business start-up projects in the agricultural sector;

– Accounting for water resources.

At the same time, in the structure of the central office of the Ministry of Agriculture, the Department for the Development of Digital Technologies in the Agrarian Sector and the State Institution “Center for Digitalization of the Agro-Industry” were created, which are responsible for the issues of the accelerated program for the development of digitalization in the industry, the introduction of digital solutions in the agricultural sector that contribute to control and maintaining food security, water resources management, state support in providing subsidies, concessional financing, modern information technologies and software products.”Reforms in the agricultural sector of Uzbekistan and the process of digitalization of this field”

At the end of 2021, the Center for Digitalization of Agro-Industry under the Ministry of Agriculture of the Republic of Uzbekistan launched 5 information systems and portals, such as the “E-IJARA TANLOV” system, on the basis of which agricultural land will be allocated, the Geographic Information System based on the ArcGIS software product, the Agro-subsidy” to support agricultural producers and “Register of agricultural machinery”.

In 2022-2023, it is planned to launch and launch 5 more electronic systems, namely the “Agroplatform”, “Marketplace” agricultural trading portal, “Smart campus” project at the Tashkent State Agrarian University, the “Rubicon” Water Resources Management System, the Unified Integration Platform Hardware and Software Complex (HSC) “Digital Agriculture”, which will become the basis for creating an ecosystem for farmers – more than 150 types of interactive services and services. The introduction of these innovative solutions will simplify and optimize business activities in the agro-industrial complex, facilitate document flow and receive interactive services, increase the transparency of processes in the agricultural industry, and most importantly, increase productivity and marginality in the agro-industrial complex”.”Reforms in the agricultural sector of Uzbekistan and the process of digitalization of this field”

The Ministry of Agriculture of Uzbekistan is faced with the task of large-scale digital transformation of the country’s agricultural industry, aimed at providing a technological breakthrough in the agro-industrial complex, strengthening food security, efficient management of water and other resources in order to achieve productivity growth in agricultural enterprises.