SNAPSHOT OF THE AGRICULTURAL SECTOR

Agriculture remains a foundational pillar of Uzbekistan’s economy, particularly in rural areas, where nearly 49% of the population resides as of 2024. The sector contributes approximately 19.2% to national GDP and accounts for 5.8% of total export revenues, underscoring its importance to both economic activity and food security. Uzbekistan possesses significant agricultural land endowments, with favourable agro-climatic conditions supporting a diverse crop base. In 2024, the country’s grain harvest surpassed 9 million tons for the first time on record, reflecting increased productivity and improved land use. According to data from the National Statistics Committee, major crop outputs include wheat (34.4%),cotton (29.9%), fruits (8.9%), forage crops (7.1%),vegetables (5.9%), grapevines (3.2%), potatoes (2.4%),and melons and gourds (1.4%). The remaining 8.3%comprises a variety of other crops, demonstrating sector’s growing diversification. Uzbekistan is a leading agricultural supplier in Central Asia and the CIS, with an expanding export presence in China.

The Government of Uzbekistan has launched the Strategy for Agricultural Development 2020–2030, aimed at fostering a more competitive and sustainable agricultural sector. The strategy focuses on liberalizing domestic and external markets, enhancing productivity, and promoting environmental resilience. To support these objectives, the sector benefits from a range of targeted fiscal incentives. Enterprises deriving at least 90% of income from crop production are eligible fora 0% corporate income tax (CIT) rate. Additional exemptions apply to property, land, water, and excise taxes. Furthermore, the establishment of two agricultural free economic zones (FEZs)—in Bukhara and the Republic of Karakalpakstan—provides preferential regimes to attract investment in agribusiness and agro-processing. In 2024, the Ministry of Agriculture initiated 24 investment projects totalling USD 988.5 million, including foreign direct investment, as part of a broader pipeline aiming to mobilize over USD 5 billion. Strategic efforts are underway to ensure efficient use of external financing and accelerate project implementation to support farmers and agribusinesses. Agricultural exports reached USD 1.5 billion in 2024. The primary markets for fruit and vegetable exports included Russia (42.1%), Kazakhstan (12.7%), Pakistan (12.6%),and Afghanistan (8.0%), reflecting the sector’s growing integration into regional value chains.