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Uzbekistan: leasing to farmers

Botschaft Usbekistan, December 29, 2015

Leasing ranks among the most effective mechanisms to support farmers’ movement and promote modernization of agriculture. An Uzbekistan Today reporter has met with the Deputy Chairman of O’zqishloqho’jalikmashlizing Company, Bakhodir Ruzmetov, to find out about the process of development of the financial mechanism in Uzbekistan.

“Today, our company provides leasing services to more than 37,000 farms, machine and tractor fleets, alternative machine and tractor fleets and enterprises under O’zdonmahsulot and Qishloqhujalikkimyo companies. In particular, over the past decade our company has supplied them with 52,200 items of technical equipment worth more than 1.4 trillion soums (currency rates of CB RU from 23.12.2015 1$= 2794.98 soums).

Stimulation of farms makes the farmers true owners of their land and modern equipment and technologies. They are provided with a range of benefits if they want to lease technical equipment. The annual interest rate for leasing has decreased from 12 to 4.5%. The fact that the lease term is three years and that the equipment is delivered in the shortest possible terms after a deal is reached and advance payment is made is advantageous for farmers.

Each year has been demonstrating the growing need in leasing of equipment, and the expanding range of the machuinery. 56 kinds of equipment have been presented this year, against 30 in 2011. In the first nine months of 2015, sales have been dominated by tractors and combines, which accounted for 35-40% and 15-20% of the total supply of agricultural machinery leasing accordingly. During the reported period, 932 tractors have been purchased. The bulk of them was delivered to Khorezm (85), Namangan (71) and Samarkand regions (71).

The number of agricultural machinery and equipment delivered varies as follows: the largest number of machines was purchased in Syrdarya region (415), Samarkand (401) and Kashkadarya (282) regions, while the lowest - in Andijan (163), Navoi (169) and Fergana (173) regions.

The tendency promises to retain until the end of the current year. The development of the production of many types of tractors and combines in Uzbekistan has entailed the decrease in their prices, so the farmers have been purchasing more of them. Tractors and mini-machinery are particularly popular now, so it is easy to lease them on favorable terms.

A dramatic expansion of territories of horticultural farms from 2,800 hectares to 55,800 hectares over the recent years throughout the country is another reason of the growth in supply. As a result, the demand for tractors and other specific types of equipment has increased among the farmers and gardeners. The mini-tractors G38, TT-40 and U62, as well as chemical processing units VP-1M and ORPD-12M rank among the most popular types.

A total of 3,400 units of agricultural machinery worth more than 202.6 billion soums have been leased within the reported period. Leasing deliveries have grown by 20.5% against the last year. The company has delivered 690 items of tractors of various brands, 132 plowing tractors, 30 horticultural and transporting tractors, combine harvesters and about 2,500 items of other types of equipment through the leasing.

Source: «Uzbekistan Today» newspaper

Original-Inhalt von Botschaft Usbekistan und übermittelt von Botschaft Usbekistan