The World Bank Agriculture Modernization Project (P158372)
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significantly increased the state procurement prices of both cotton and wheat and in 2019 they have largely reached the
market level. The GoU, in the adopted Agricultural Strategy, indicated readiness to eliminate the state production targets
in 2021, which should also help fully eliminate the use of forced labor in cotton harvesting. Agricultural growth in 2017
and 2018 was only 1.2 percent and 0.3 percent, respectively. In 2019, it is projected to increase to 3 percent as the
reforms begin showing results.
Table A1.2: Disbursement of HDP loans by type of investments, September 2019 Number of sub-loans Amount, US$ million Share of loan amount, % Greenhouses
395
321
60.7
Cold storage
226
46
15.8
Processing
74
57
10.7
Intensive orchards
55
46
8.8
Packaging lines
31
18
3.4
Others
19
4
0.8
TOTAL 800 492 100 Source: HDP M&E reports (2019). Table A1.3: Developments of areas under orchards, 2018 Total area, ha Share in total area, % Intensive orchards, ha Share of intensive orchards, % Apple
111,158
39.8
21,952
19.7
Apricot
39,938
14.3
0
0
Peach
35,321
12.6
2,031
5.8
Plum
23,087
8.3
820
3.6
Sweet cherry
21,315
7.6
1,578
7.4
Pear
11,470
4.2
0
0
Nuts
7,123
2.5
52
0.7
Cherry
6,123
2.2
120
1.9
Quince
4,681
1.7
0
0
Pomegranate
4,754
1.7
0
0
Persimmon
2,889
1.0
0
0
Others
11,220
4.1
0
0
TOTAL 144,900 100.0 26,553 18.1 Source: WB staff estimates. 9. While initial agricultural reforms focused more on production, product price liberalization, and trade-related enabling environment measures, second generation reforms need to focus on factor market efficiency and public institutions, which continue to inhibit growth in agriculture in general and horticulture in particular. Land tenure
insecurity and lack of a formal land rental market remain significant challenges in the medium to long-term. In addition,
the lack of a functioning financial sector and the resultant narrow availability of tailored financial products with collateral
requirements deemed suitable for farmers and exporters are arguably among the most significant short-term factors
limiting the generation of quick and inclusive wins from the agriculture sector. Human capital in agriculture and
technology generation and adoption also remain low, due to significant underinvestment in agricultural R&D that is
proven globally to drive agricultural growth. Uzbekistan’s public investments in agricultural research and extension in
2016-2018 averaged a dismal 0.02 percent of agricultural value added, compared to the average of 1.0 percent in middle-
income countries and 2.5 percent in high income countries
53
. In fact, the most agricultural public goods in Uzbekistan
53
WB report. 2019. Agriculture Public Expenditure Review for Uzbekistan.
