Tashkent, Uzbekistan (UzDaily.com) — The Senate of Uzbekistan has reviewed and approved the Law on Agricultural Risk Insurance during its latest plenary session. This legislation aims to establish a reliable system for protecting the agricultural sector from natural disasters, climate change, and other threats that cause significant annual losses for farmers.

Agriculture remains one of the key sectors of Uzbekistan’s economy, ensuring food security and contributing to the country’s export potential. However, it is also one of the most vulnerable industries due to its heavy dependence on external factors such as droughts, floods, hail, hurricanes, pests, and market fluctuations.

The new law provides for the creation of an Agricultural Insurance Fund to safeguard producers from financial losses caused by these risks. Special attention is given to government support mechanisms, with 50% of the insurance premium to be covered by the state. In cases of large-scale losses that exceed the fund’s capacity, additional funds will be allocated from the national budget.

A key innovation is the involvement of independent experts to assess damages and determine the amount of insurance payouts, ensuring transparency and objectivity in the process.

The law also clearly defines the rights and responsibilities of all participants in the insurance system, including farmers, insurance companies, and government agencies. By establishing a unified regulatory and oversight framework, the legislation lays the foundation for an effective agricultural insurance system.

Senators emphasized that the implementation of this law will not only minimize financial losses for farmers but also enhance the sector’s investment appeal. This, in turn, will strengthen the country’s food security and provide stable incomes for agricultural producers.

The law was unanimously approved and will soon come into force, opening new opportunities for the development of Uzbekistan’s agricultural sector.