Ministry of Agriculture: Farmers Have Started Using State Loans Strictly for Their Intended Purpose

- Farmers have begun to purposefully use government loans. This information was presented on the radio by the First Deputy Minister of Water Resources, Agriculture, and Processing Industry, Zhanibek Kerimaliev.

As Kerimaliev noted, at the initial stage of implementing agricultural financing programs, there was observed misuse of allocated funds. Loans were often spent on non-agricultural needs, including repairs and purchases unrelated to agriculture. However, the situation has changed now due to regular monitoring by the relevant authorities.

“As of today, if a farmer receives a loan to purchase breeding livestock or high-quality seeds, these funds are used specifically for the stated purposes. Farmers have already adapted to the requirements and conditions of the programs,” he added.

Kerimaliev also mentioned the existing program of the CPC with an interest rate of 6% per annum, for which 6 billion soms have been allocated. Under this program, financing is carried out through a cluster mechanism: a cluster is formed around an aggregator, with which farmers sign contracts, after which the loan funds are distributed through it.

The First Deputy Minister emphasized that the main principle of state support remains the cluster approach “from field to shelf.” Nevertheless, he noted that there are still difficulties in the area of cooperation among farmers, as not everyone is ready to effectively unite.

“It is necessary to unite not only in terms of land or equipment but also in terms of products. This is the only way to consolidate farms and increase production volumes,” he explained.

Kerimaliev noted that the consolidation of farms is one of the priority tasks of agricultural policy, especially in light of entering external markets, including China. Successful export requires a significant amount of homogeneous products of one type and variety, which facilitates calibration and the formation of batches.

This work is being carried out within the framework of various agricultural financing programs, including the FSK program. Many farmers are already actively using these tools for crop production and livestock farming.

“Each program has its target audience. Farmers participating in the FSK program typically do not switch to other mechanisms, as they are well aware of the conditions and procedures,” noted the First Deputy Minister.