World Bank Document

6. 
Between 2017 and 2019 the GoU eliminated the majority of export restrictions. They included the following: (i) 
abolishment of export monopoly of Uzagroexport; (ii) abolishment of mandatory sale of 25 percent hard currency 
earning, and permission to keep 100 percent value of earned hard currency in exporters’ account; (iii) reduction in time 
to receive certificate and register the contract at the customs for horticulture exporters; (iv) elimination of railroad 
monopoly for export; (v) establishment of “green corridors” at border crossings; (vi) elimination of minimum export 
prices; and (vii) removal of full prepayment requirement for export contracts outside of Uzagroexport
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. 
7. 
The GoU has also been focusing on improving access to credit for farmers and agribusinesses to invest in 
horticulture value chains, including in adoption of improved technologies. Some of the investments were financed by 
the WB-supported HDP, which have focused on supporting modern greenhouses, followed by cold storage, and 
processing (Table A1.2). Investments in intensive orchards and handling/packaging have remained limited, reflecting 
large constraints and high risks faced by farmers and agribusinesses in managing these assets and the need for the 
proposed project to address them to increase farmer participation in the investment and growth opportunities offered 
by the recent economic liberalization. The share of ‘intensive’ orchards is estimated at 18 percent of total orchard area 
in Uzbekistan (Table A1.3). By 2021, the GoU plans to double the area under intensive orchards and build a network of 
ALCs to support agglomeration and value addition through handling, packaging, and distribution.
8. 
Reforms, albeit at the slower pace, have also started in cotton and wheat subsectors. The priority action there 
has been to promote diversification by converting some cotton and wheat areas into horticulture production. During 
2015-2019, more than 280,000 ha of land was shifted away from cotton production and 100,000 ha away from wheat 
production, with the largest reduction to have taken place in 2018-2019. More cotton and wheat land are planned for 
future conversion to production of horticulture crops. Yet, a larger shift is conditioned by improvement in cotton and 
wheat productivity (yields), which in turn depends on elimination of the state order system. Since 2015, the GoU has 
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WB’s Program Document. 2019. Sustaining Market Reforms in Uzbekistan DPO for the description of the recent economic reforms.
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WB report. 2019. China/Russia 2030 – Opportunities for Central Asia’s Agriculture and the WBG report. 2018. CPSD. 
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Policy dialogue for these reforms has been underpinned by the MFD-inspired WBG’s analytical work (e.g., CPSD) and investment projects (e.g., 
WB-financed HDP). Elimination of minimum export prices and removal of full prepayment requirement for export contracts outside of Uzagroexport 
were among the prior actions in the WB’s second DPO approved in May 2019.

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