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Economy 27/09/2024 The Ministry of Agriculture of Uzbekistan comments on reports of additional agreements with farmers

The Ministry of Agriculture of Uzbekistan comments on reports of additional agreements with farmers

Tashkent, Uzbekistan (UzDaily.com) — The Ministry of Agriculture of Uzbekistan has commented on reports regarding the conclusion of additional agreements with farmers to reduce the price of cotton to 6,800 soums.

Statements by the head of the Agriculture Department of the Surkhandarya region, Rahmatullo Gafarov, circulated on social media, where he mentioned the need to gather all farmers and sign a "form from Tashkent"—an additional agreement to lower the cotton price to 6,800 soums.

He also stated that previously signed contracts for the supply of cotton at 8,000-9,000 soums per kilogram would be canceled.

The ministry has not given any instructions to territorial managements or their leaders to terminate contracts with cotton producers or regulate relations between farmers and clusters, as noted in the department.

The ministry claims that over 90% of farmers across the country have already re-registered their contracts in accordance with the agreements and are selling the harvested cotton at a price of 7,800 soums per kilogram, including subsidies.

The volume of cotton raw material is registered via electronic scales and displayed on the Agroplatforma.uz platform.

In case of misunderstandings among farmers, the ministry is ready to consider each situation and offer solutions and assistance.

"In all problematic cases regarding the sale of cotton (lack of contracts, unwillingness of farmers to sell raw materials to unsuitable clusters, waiting for price increases, etc.), we inform that the harvested raw material can be temporarily stored at cotton reception points, and we will work together with producers to resolve arising issues. Our goal is to ensure proper storage of the harvested cotton at reception points and transparent display of its volume on the platform," the ministry stated.

On Thursday, an audio message from the agricultural advisor to the Hokim of the Kashkadarya region, Ganisher Haidarov, became available online, in which he urged cotton and textile clusters to work with farmers within their designated areas and not to encroach on the territories of other clusters.

He also stated that from today onwards, cotton should not be "traded" on the exchange at prices higher than 6,800 soums per kilogram. "Anyone who trades above this price will incur losses," he added.

According to the legislation, cotton and textile clusters are required to sign futures contracts with farming enterprises for the cultivation of raw cotton for the next year’s harvest by October 1.

The advisor to the Hokim of Kashkadarya warned the clusters that if they enter into futures contracts at prices of 7,000-8,000 or 10,000 soums, future prices will remain unchanged. "If you think prices will drop back to 6,800 soums, you are mistaken," he concluded.

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