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ORDER OF THE GOVERNMENT OF THE KYRGYZ REPUBLIC

of April 21, 2017 No. 237

About approval of the Concept of development of agricultural cooperative system in the Kyrgyz Republic for 2017-2021

For the purpose of implementation of state policy in forming and development of agricultural cooperative system, according to articles 10 and 17 of the constitutional Law of the Kyrgyz Republic "About the Government of the Kyrgyz Republic" the Government of the Kyrgyz Republic decides:

1. Approve:

- The concept of development of agricultural cooperative system in the Kyrgyz Republic for 2017-2021 according to appendix 1;

- The actions plan on implementation of the Concept of development of agricultural cooperative system in the Kyrgyz Republic for 2017-2021 (further - the Actions plan) according to appendix 2.

2. To heads of the ministries, administrative departments, plenipotentiaries of the Government of the Kyrgyz Republic in areas:

- provide execution of the Actions plan;

- following the results of every half-year, no later than the 20th following the accounting period to provide information on the course of implementation of the Actions plan in the Ministry of Agriculture, the food industry and melioration of the Kyrgyz Republic.

3. Assign to the Ministry of Agriculture, the food industry and melioration of the Kyrgyz Republic coordination of implementation of the Actions plan.

4. To the Ministry of Agriculture, the food industry and melioration of the Kyrgyz Republic following the results of every half-year, no later than the 25th following the accounting period to submit the generalized report on the course of implementation of the Actions plan in Government office of the Kyrgyz Republic.

5. To impose control of execution of this resolution on department of agro-industrial complex and ecology of Government office of the Kyrgyz Republic.

6. This resolution becomes effective after seven days from the date of official publication.

Prime Minister

S. Zheenbekov

Appendix 1

The concept of development of agricultural cooperative system in the Kyrgyz Republic for 2017-2021

1. Introduction

The agricultural cooperative (further - agricultural cooperative) is one of important segments of the cooperative system directed to growth in prosperity and employment of rural population on development of social infrastructure of the village, the main task which the organization for enlargement and consolidation small country and farms is (further - peasant farm) in agricultural cooperatives, and also creation of consumer cooperation in rural regions on acceptance, storage, transportation and sales of products of peasant farm, agricultural cooperatives, individual entrepreneurs.

The concept provides the problem resolution of development of agricultural cooperatives and is designed to create necessary conditions for the solution of financial and economic tasks, to promote realization of the purposes of social and economic development of the republic till 2021.

2. Analysis of the current situation

Development of agricultural cooperatives is in the Kyrgyz Republic at the initial stage and plays important role in strengthening of economy, competitiveness, improvement of conditions of managing and creation of incentives for growth of products.

Actions of the State program of development of agricultural cooperative movement in the Kyrgyz Republic approved by the order of the Government of the Kyrgyz Republic of December 24, 2002 No. 875, are not realized, there was no development of agricultural cooperatives.

According to National Statistical Committee of the Kyrgyz Republic, the number of the operating agricultural cooperatives in comparison with 2006 was reduced by 3 times. In 2006 1240 cooperatives, in 2016 - 360, from them were registered: in Chuy Region - 56; Issyk kul - 49; Osh - 49; Jalal-Abad - 97; Talas - 72; Naryn - 23; Batken - 13.

The analysis of activities of cooperative movement showed that agricultural cooperatives have considerable unrealized potential and in the long term will take the important place in the solution of long-term social and economic problems of rural population.

Development of agricultural cooperatives in the Kyrgyz Republic began during reforming of kolkhozes and sovkhozes and carrying out land and agrarian reforms which were directed to forming of market economy and provided economic and production independence to rural producers, introduction of private property on the earth and other means of production.

Distribution of land on equity sign led to development of small-scale production, in the village of small peasant economy which has the small income and lead natural farming to domination. Such farms are limited in possibility of receipt of technical, commodity and financial resources that is the main obstacle for their further development.

Separation of lands into small sites does not allow to use effectively crop rotation of fields that leads to irrational use of irrigation water, the equipment and financial resources.

As shows international experience, the most acceptable method of the problem resolution of servicing of peasant farm is creation by rural producers of agricultural cooperatives.

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