Mirziyoyev approved the mechanisms of transition to market conditions in the purchase of grain

Shavkat Mirziyoyev approved the mechanisms of transition to market conditions in the purchase of grain, the correspondent reports Podrobno.uz with reference to the relevant resolution of the head of state.

In particular, the President approved proposals for the production of a total of 2.5 million tons of wheat, an average of 2.5 tons from each hectare of irrigated areas of the 2022 harvest. Of these:

1.7 million tons will be purchased as commercial wheat of the state resource and 266.5 thousand tons of seeds at the expense of the State Support Fund for Agriculture

500 thousand tons of grain will be taken for temporary storage by a commercial representative of the Fund for further sale at stock exchange auctions by farms and other grain producers.

In addition, the following conditions are defined for the 2022 harvest:

a) enterprises of the Uzdonmakhsulot JSC system are commercial representatives on behalf of the Fund for the purchase from wheat producers, storage, and shipment of marketable wheat to buyers

b) payments for commercial wheat purchased for state resources are made by a commercial representative to wheat producers at the expense of the Fund at the following stages:

at the initial stage – at prices set by the Cabinet of Ministers;

at the next stage, based on the average price (average quotation) formed on the stock exchange, a full recalculation is made with wheat producers;

c) commercial wheat, accepted from wheat producers for temporary storage to commercial representatives, is sold in July – August 2022 at exchange auctions. At the same time:

the costs of transportation (including internal transportation), acceptance, storage and shipment of wheat to the buyer are covered at the expense of the Fund based on the terms of the contract concluded between the commercial representative and wheat producers;
the amount of natural loss in the process of acceptance, storage and shipment of wheat to buyers is written off in the manner approved by the Cabinet of Ministers;

control over the quality and storage of wheat is carried out by the Inspection for the Control of the Agro-industrial Complex under the Cabinet of Ministers.

Within the framework of the document, a new procedure is introduced in the country, according to which wheat purchased at the expense of the Fund and accepted for temporary storage from producers is sold through exchange trading according to schedules approved by the Cabinet of Ministers, without any restrictions:

wheat of class 3 and above – to business entities, regardless of the form of ownership, having flour production facilities, who have assumed obligations to sell at least 75 percent of wheat purchased on the stock exchange through exchange trading;

wheat of grades 4 and 5 – to all business entities.

An information system will be launched within three months for the prompt and transparent implementation of financial settlements between the Fund, the commercial representative and wheat producers, as well as ensuring the process of acceptance and delivery of grain from warehouses d-xarid.uz .

Another important point is that the Ministry of Finance has been instructed to allocate up to 800 billion soums for revolving loans for the purchase of wheat on the stock exchange to enterprises of the Uzdonmakhsulot system.

Mirziyoyev also agreed with the proposal to cover part of the transportation costs, not exceeding 50 percent, for the supply of flour and flour products to remote, inaccessible and mountainous areas at the expense of additional sources of local budgets.

In addition, in order to prevent shortages and ensure price stability, the President instructed to ensure the import of flour and flour products necessary for consumer demand from other regions of the country and from abroad.

It is planned to produce more than 7 million tons of grain in Uzbekistan this year.

Source: podrobno.uz