Uzbekistan has approved a Program of Further Upgrade, Technical and Technological Extension of Agricultural Production for 2012-2016.

The program was developed by the Ministry of Agriculture and Water Resources of the country together with concerned government agencies.

It includes prognostic parameters of production and upgrade of major types of domestically produced agricultural machinery, as well as the lists of investment projects on the establishment of manufacture of new kinds of agricultural and land reclamation machinery, vehicles and technological equipment for production and processing of agricultural products.

In order to increase the effectiveness of sales in the republic special exhibitions of domestic agricultural machinery and equipment will be annually held before September 1. The exhibitions will be monitored and basing on their results it is projected to generate the proposals on selection for the production and supply of modern agricultural and efficient types of vehicles meeting the top world samples and international requirements and standards.

As part of this document it is projected to establish a specialized design engineering bureau for the latest agricultural technology in Uzbekistan. It will develop technologies and equipment taking into account the specific features of agricultural production in the country and the requirements for tillage, planting, harvesting and maintenance machinery in cotton, fodder, vegetable growing, horticulture and viticulture. It is planned to work out the project of the establishment of the Bureau by the end of July.

Commercial banks will provide loans and leasing services for the upgrade, technical and technological extension of agricultural production at the interest rate not exceeding the Central Bank refinancing rate. The privilege will apply only to financing the purchase of domestically produced agricultural machinery by farms, machine and tractor fleets, territorial divisions of Uzpakhtasanoat Association and Uzdonmahsulot, as well as to the implementation of investment projects on reconstruction and technological extension of the service network through the purchase of necessary equipment, accessories and tools.

In addition, preferential loans at the Central Bank refinancing rate will be issued for replenishment of the working capital of domestic manufacturers of agricultural and land reclamation machinery, their dealer and service structures, as well as leasing companies that provide services to agricultural producers for the purchase of leased equipment by domestic production.

A new procedure for procurement of agricultural machinery is introduced in Uzbekistan. Under it, the purchasers should conclude purchase contracts with domestic manufacturers of agricultural machinery, specifying terms of payment and delivery before October 1 for the purchase of equipment next year. The advance payment for agricultural machinery of domestic production should be processed not later than three months prior to the date of delivery specified in the purchase contract.

Enterprises of agricultural machine building will now envisage the costs for financing of research and design activities for their products when calculating the prices for manufactured products at a rate of one percent of the cost of products with the further accumulation of funds on separate accounts.

Besides, the manufacturers of agricultural machine building are exempt from income tax for selling new kinds of equipment, components, assemblies, components and spare parts, from the property tax in terms of fixed assets used for production of new types of machinery, components, assemblies and spare parts for a period of five years to motivate them for the development of production of new types of equipment, components and spare parts for them, including the manufactures based on licensing agreements with the world’s flagship manufacturers. (Source: “Uzbekistan Today” newspaper)