The agricultural sector is a major contributor to economic growth, job creation, and export revenues in Uzbekistan. However, the Uzbek agricultural sector has been dominated by the production of cotton and wheat, two highly regulated sub-sectors. After numerous farm and sector restructuring processes, the productivity and production levels remain low and diversification limited. Institutions are fragmented and have limited technical and management capacity and are therefore unable to deliver the sector services that a competitive, market-led agriculture sector demands.
This project aims to contribute to the achievement of the 2030 Vision of the Agri-Food Sector (presented in the Uzbekistan Agri-Food Development Strategy 2020-2030), which aims to develop a competitive, market, and export-oriented Uzbekistan Agri-food Sector. This in turn will increase farm income, create new jobs, enhance food security, and ensure the sustainable use of natural resources. To do so, the project will accompany the Government of Uzbekistan in the implementation of the sector reform, to which the EU is providing an additional €33 million through its Budget Support modality.
In particular, the project will assist the Ministry of Agriculture to manage the transition process from a planned economy to a market-based system by creating an enabling policy and regulatory environment, and by also strengthening institutional capacities within the sector.