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Credit lines worth 500 billion soums have been opened to agricultural cooperatives in Uzbekistan

«People's Bank», «Microcreditbank», «Turonbank», and «Aloqabank» will allocate 500 billion soums in credit funds by the end of the year to support cooperative agricultural production. This is stipulated by the government's resolution dated July 7.

The funds are intended for enterprises in 30 districts across Uzbekistan that will cooperatively produce agricultural products in the fields of fish farming, rabbit breeding, livestock farming, poultry farming, and beekeeping on the lands of dehkan farms and household plots, as well as purchase the produced goods.

Small and medium-sized businesses corresponding to the specialization of mahallas, with a high degree of household coverage and a business development program, can participate in the cooperation.

Loans are allocated to small and medium-sized businesses in the following amounts, depending on the number of cooperation agreements signed with unemployed individuals or citizens seeking to increase their income:

• Up to 1 billion soums — for entities that sign up to 30 agreements;
• Up to 3 billion soums — for entities that sign between 31 and 100 agreements;
• Up to 5 billion soums — for entities that sign more than 100 agreements.

The Entrepreneurship Development Company will compensate part of the interest expenses.

One cooperation agreement is signed with each citizen. Unemployed individuals must be registered as business entities, dehkan farms, or self-employed persons in accordance with the established procedure.

A mandatory condition is the purchase of the goods produced (or grown) by the citizen or the payment of a monthly salary under the agreement.

The new law on agricultural cooperatives was signed by the president in 2024. The document defines an agricultural cooperative as an independent commercial organization based on shared ownership and the voluntary association of individuals and/or legal entities for agricultural activities.

The main goal of such cooperatives is to pool resources and efforts to improve production efficiency, reduce costs, and increase the income of cooperative members.

An agricultural cooperative is established with at least seven individuals and/or legal entities. A joint cooperative may also be formed with at least three cooperatives.

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