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

Ирэн Орлонская Exclusive
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- The leading farmers of the country have become more responsible in their use of government loans, directing them towards the stated goals. This information was announced on the radio by the First Deputy Minister of Water Resources, Agriculture, and Processing Industry, Zhanibek Kerimaliev.

Kerimaliev noted that at the beginning of the implementation of programs for financing the agricultural sector, there were cases where funds were used for unintended purposes, including expenses for repairs and the purchase of goods unrelated to agriculture. However, the situation has changed thanks to regular monitoring by the relevant authorities.

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

One of the support measures is the CPC program, which offers an interest rate of 6% per annum. A total of 6 billion soms has been allocated for its implementation. Financing is carried out through a cluster mechanism: a cluster is formed around an aggregator, and farmers enter into agreements with it, after which the loan funds are distributed through this aggregator.

The key principle of state support remains the cluster approach “from field to shelf,” however, as Kerimaliev noted, there are certain difficulties in developing cooperation among farmers, as not everyone is ready for effective consolidation.

“It is necessary to unite not only by land plots or equipment but also by products. Only in this way can production volumes be increased and farms consolidated,” he explained.

Kerimaliev emphasized that the consolidation of farms is one of the main tasks of agricultural policy, especially in the context of entering international markets, including China. For successful export, large volumes of homogeneous products of the same type and variety are needed, which facilitates the process of calibration and forming batches.

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

“Each program has its own client audience. Farmers working under the FSK program typically do not switch to other mechanisms, as they are well aware of the conditions and procedures,” concluded the First Deputy Minister.
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