Uzbekistan is undertaking a comprehensive reform of its state support system for the agricultural and food sectors, introducing a more centralized, digitalized and performance-oriented approach to subsidies and financial incentives.

The reform is implemented in line with the broader policy framework aimed at increasing efficiency, transparency and impact of public funding in the agrarian sector.

Shift to a more efficient support model

 

The new system is designed to:

• reduce administrative and time costs through digitalization;
• streamline and consolidate support measures;
• improve targeting and effectiveness of subsidies;
• increase overall agricultural productivity.

A key institutional change is the strengthened role of the Agricultural Payments Agency, which now acts as the central body responsible for administering and monitoring state support.

Full digitalization of subsidy processes

 

A core element of the reform is the end-to-end digitalization of support mechanisms, covering:

• application submission;
• review and approval;
• allocation and disbursement of funds;
• monitoring and reporting.

The system is being integrated with various government databases, enabling data-driven verification and improved transparency.

Funding is channeled through dedicated accounts, ensuring traceability and control over the use of public funds.

Expanded and structured subsidy coverage

 

The updated framework introduces a more structured approach to subsidies, covering key areas such as:

• water-saving irrigation technologies;
• electricity costs for irrigation systems;
• livestock development and breeding;
• agricultural machinery and precision technologies;
• renewable energy solutions in agriculture;
• horticulture, vineyards and greenhouse development;
• financing costs (loans and leasing);
• quality management systems and processing infrastructure in the food industry.

The focus is clearly on modernization, sustainability and productivity gains.

Stronger compliance and control mechanisms

 

The reform introduces stricter oversight of subsidy use:

• field inspections are carried out by the agro-industrial inspectorate;
• compliance with eligibility and usage requirements is closely monitored;
• misuse of funds or inaccurate disclosures triggers sanctions.

Notably, entities that violate subsidy conditions may be excluded from receiving state support for up to three years.

Performance monitoring and policy feedback

 

The Agricultural Payments Agency is also responsible for:

• assessing the effectiveness of support measures;
• identifying inefficiencies;
• proposing new instruments or discontinuation of ineffective ones;
• reporting regularly to the government.

This creates a dynamic, performance-based policy framework rather than a static subsidy system.

Implications

 

The reform signals a transition to:

• centralized and transparent subsidy management;
• increased accountability for beneficiaries;
• stronger alignment of state support with measurable outcomes;
• greater emphasis on digitalization and data-driven governance.

For agribusinesses, this means improved access to structured support but also heightened compliance expectations.

The measures entered into force in April 2026.