Tashkent, Uzbekistan (UzDaily.com) -- The Presidential Decree “On additional measures for the further development of free market relations in agriculture” was adopted.

According to the Decree, starting from the 2024 harvest, futures contracts for the supply of raw cotton between farms producing raw cotton and clusters are concluded based on the results of trading conducted separately for each region in the “raw cotton section” of the Commodity and Raw Materials Exchange within the framework of soil fertility standards.

Also, from the 2024 harvest, the following procedure for financing the cultivation of raw cotton, the collection and purchase of cotton will be introduced using credit resources from the State Support Fund for Agriculture, according to which:

annually, from 1 October, producers and seed-growing entities that have entered into a futures contract for the cultivation of raw cotton are allocated loans in the amount of up to 60 percent of the cost of raw cotton at a rate of 10 percent per annum for a period of 14 months, including a grace period of 12 months;

loans are allocated to clusters:

for the final payment for the purchase of raw cotton - in the amount of up to 80 percent of the cost of raw cotton at a rate of 10 percent per annum for a period of 10 months, including a grace period of 6 months, with the condition of return over the next 4 months in equal shares;

for growing raw cotton on a plot of land with the right to lease - in the amount of up to 60 percent of the cost of raw cotton at a rate of 10 percent per annum for a period of 24 months, including a grace period of 18 months, with the condition of return over the next 6 months in equal shares;

for the collection of raw cotton grown on a land plot with the right to lease - in the amount of up to 20 percent of the cost of raw cotton at a rate of 10 percent per annum for a period of 12 months, including a grace period of 3 months, with the condition of return over the next 9 months in equal shares;

80 percent of payments for raw cotton accepted from producers on the basis of a futures contract are made no later than three working days from the date of acceptance of raw cotton, the remainder - before December 31 of the fiscal year.

Starting from the 2024 cotton harvest, an automated system of mandatory accounting of raw cotton and produced cotton fiber accepted through electronic scales will be introduced until May 1, 2024.

From 1 January 2024, measures will be taken to:

implementation of international financial reporting standards in clusters;

conducting an independent external audit of the efficiency of activities and financial indicators of clusters with the involvement of reputable international audit organizations.