Uzbekistan to Borrow $400 Million for Agricultural Mechanization
Uzbekistan's government has approved a plan to attract up to $400 million in foreign credit lines for the purchase of agricultural machinery and equipment. According to presidential decree PQ-97, signed on March 13, the program is aimed at significantly increasing the level of mechanization in the country's agricultural sector.
Under the decree, commercial banks will distribute foreign credit lines provided under state guarantees to farmers and agricultural enterprises. The loans will have a maturity period of up to 10 years, including a two-year grace period. Interest rates will be set at the Central Bank's base rate plus a 4% margin charged by participating banks.
Target: 70% Mechanical Cotton Harvesting
One of the program's key objectives is to achieve a 70% share of machine-assisted cotton picking in 2026 — a significant departure from the manual harvesting methods that have dominated the country's cotton industry for decades. Payments for cotton and grain harvesters supplied through preferential loans and leasing arrangements will be scheduled twice a year, on January 31 and July 31.
Uzbekistan officially abolished Soviet-era forced labor practices and eliminated state cotton production quotas in 2020. In March 2022, the international Cotton Campaign coalition lifted its boycott of Uzbek cotton, confirming the eradication of systemic forced labor in the sector — a milestone that had previously prompted more than 330 global brands to avoid sourcing from the country.
Agrobank Designated as Digitalization Driver
The decree designates Agrobank as the key driver of transformation in the agricultural sector. In 2026, the bank is tasked with mobilizing 25 trillion soum in additional resources:
- $600 million from foreign financial institutions;
- 18 trillion soum from domestic sources.
Agrobank has been instructed to establish agro-service zones in every region of the country by the end of 2026. In these zones, farmers will be able to receive free consultations with agronomists, conduct soil analysis, order in-vitro seedlings, and learn about new technologies.
AI, Satellite Monitoring, and Drones
The decree also calls for the creation of an Agricultural Monitoring Center that will centrally analyze satellite data, weather conditions, and crop vegetation status using big data technology and space imagery.
Agrobank will finance the procurement of drones for Uzbekcosmos to expand aerial and satellite monitoring of agricultural land. Additionally, the targeted use of preferential credits allocated for cotton and grain cultivation will be monitored using satellite and drone data.
Two pilot AI projects have been assigned: orchard monitoring powered by artificial intelligence in the Jizzakh region, and livestock monitoring in the Syrdarya region.
Italy Partnership on AI-Powered Agritech
Meanwhile, at the "Italy–Central Asia–Azerbaijan" business forum that opened in Tashkent on March 25, Uzbekistan's Agriculture Minister Ibrokhim Abdurakhmonov announced plans to import high-quality AI-powered agricultural technologies from Italy.
Matteo Zoppas, president of the Italian Trade Agency, said that approximately 100 Italian companies conducted over 450 business meetings with about 200 local enterprises. According to Zoppas, demand in the region is primarily driven by the need for mechanization, digitalization, and the use of artificial intelligence — both in hardware and software, including technologies for soil cultivation and irrigation.
At the conclusion of the forum, Uzbekistan and Italy signed an agreement to develop agricultural trade, promote investment, and expand cooperation in the agro-industrial sector.
John Deere Eyes Local Production
In a separate development, Uzbekistan is in talks with American agricultural machinery manufacturer John Deere about potential localization of production in the country. The Ministry of Investment, Industry and Trade announced the negotiations on March 24. If realized, the move would give Uzbek farmers more affordable access to world-class agricultural machinery.
AgroWorld 2026: 172 Companies from 20+ Countries
These announcements come against the backdrop of the 21st International Exhibition "Agriculture — AgroWorld Uzbekistan 2026," taking place March 25–27 at the Uzexpocentre in Tashkent. The exhibition features 172 companies from more than 20 countries, showcasing the latest solutions in agricultural machinery, livestock, veterinary science, processing, and storage technologies.
Opportunities for Farmers
Taken together, these initiatives represent significant steps toward a fundamental transformation of Uzbekistan's agricultural sector — from manual labor to digital technologies and modern machinery. For farmers, this means new credit opportunities, free consultations, soil analysis, and access to AI-powered monitoring systems.
The UFarmer app already offers farmers tools that align with this national push toward digitalization, including an agro calendar for crop planning, an AI-powered plant disease scanner, and soil analysis services — practical resources for navigating the sector's rapid modernization.
