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RESOLUTION OF THE CABINET OF MINISTERS OF THE REPUBLIC OF UZBEKISTAN

of January 25, 2018 No. 53

About measures for implementation of modern forms of the organization of cotton and textile production

(as amended on 26-02-2021)

For the purpose of forming of the market relations between farms, other agricultural producers (further - farms) and the companies of the textile industry, ensuring release of competitive products with high value added on the basis of implementation of modern forms of the organization of cotton and textile production the Cabinet of Ministers decides:

1. Accept offers of the companies of the textile industry, and also Council of Ministers of the Republic of Karakalpakstan and khokimiyats of areas on creation taking into account approbation within harvest of cotton raw of 2018 of cotton and textile production in the territories according to the list according to appendix No. 1, having provided its organization on the basis of the conclusion of the direct agreement of contracting for cultivation and supply of cotton raw between the companies of the textile industry (further - organizers of cotton and textile production) and farms.

2. Determine that:

organizers of cotton and textile production promote effective and rational use of land, water and other resources, increase in productivity and timely collection of the grown-up cotton raw, and also provide its further profound conversion and increase in production with high value added;

conditions and procedure for acquisition of agricultural machinery on leasing, the supply of mineral fertilizers, sowing seeds, fuels and lubricants, means of chemical protection of plants and other material resources provided for farms extend to organizers of cotton and textile production;

certification of the cotton fiber made for own needs within cotton and textile production is performed on voluntary basis;

the amounts of the made cotton fiber exceeding requirement of own production capacities is implemented by the organizer of cotton and textile production to other domestic consumers through the exchange biddings;

the received seeds of cotton are implemented by the organizer of cotton and textile production to the oil and fat companies through the exchange biddings or on basis to be provided with the subsequent realization of fat-and-oil products through the exchange biddings, and waste of conversion of seeds of cotton (meal, peel) - under direct agreements, first of all farms, and also other domestic consumers;

additional products (lint, ulyuk and others) are implemented by the organizer of cotton and textile production to domestic consumers through the exchange biddings;

the price of the cotton raw which is purchased by the organizer of cotton and textile production is established on contractual basis proceeding from the costs created on the basis of agroprocess charts taking into account profitability of farms and shall not be below stated prices for the state needs.

3. To Council of Ministers of the Republic of Karakalpakstan, khokimiyats of areas and areas, the Ministry of Agriculture and the Ministry of water economy of the Republic of Uzbekistan together with Council of farmer, Dehkan farms and owners of garden plots of Uzbekistan in ten-day time to determine the list of farms and to render practical assistance in the conclusion of agreements of contracting by them with organizers of cotton and textile production.

To the Ministry of Justice together with the Ministry of Agriculture and the Ministry of water economy of the Republic of Uzbekistan, Council of farmer, Dehkan farms and owners of garden plots of Uzbekistan and Uztekstilprom Association in week time to develop and approve the standard agreement of contracting for cultivation and supply of cotton raw concluded between farms and organizers of cotton and textile production, having provided including measures of unconditional accomplishment by farms of the obligations.

To the Prosecutor General's Office of the Republic of Uzbekistan to establish tough control of strict execution of conditions of agreements, and also effective use of lands within cotton and textile production.

4. Determine that:

advancing of farms is made by the corresponding organizers of cotton and textile production in sizes and on the conditions provided by agreements of contracting;

to organizers of cotton and textile production the credits for financing of cultivation and supply of cotton raw by it by fund of the state support of agricultural industry are allocated under the Ministry of Finance of the Republic of Uzbekistan of the Republic of Uzbekistan (further - Fund) through the servicing commercial banks according to appendix No. 1 to this resolution, with provision of the insurance policy as providing;

final settlements with farms on cotton raw are perfromed by organizers of cotton and textile production until the end of the year of harvesting.

5. Provide to fund in accordance with the established procedure and terms opening for organizers of cotton and textile production of credit lines according to agrotechnical actions, using the operating financing terms of cultivation by farms of cotton raw.

To complex of the Cabinet of Ministers concerning agricultural and water economy, conversion of agricultural and food products (Z. T. Mirzayev), to the Ministry of Finance and the Ministry of Economics of the Republic of Uzbekistan till February 1, 2018 to approve balance of Fund for 2018.

6. Determine that:

the funds allocated for the purpose of cultivation of cotton raw for cotton and textile production are transferred into the special account of farm, and also to organizers of cotton and textile productions, suppliers of material resources and the organizations rendering services based on the agreements signed with organizers of cotton and textile productions;

the means which arrived into special accounts of farms can be used only for purchase of goods (works and services) necessary for cultivation of new harvest of cotton raw, and cannot be directed to repayment of earlier accrued obligations of the account holders who are not connected with cultivation of new harvest;

additional costs on cultivation and supply of cotton raw and expenses on acquisition of agricultural machinery for farms can be financed by organizers of cotton and textile production by own means or the credits of the commercial banks issued including on the security of export delivery contracts of textile and sewing and knitted products;

the money and property received and given by organizers of cotton and textile production and the farms forming cotton and textile production, which are not connected with turnovers on sales of products of own production and also distribution of net profit are not the taxation object (except for the value added tax).

Grant the right to organizers of cotton and textile production to perform transfer of property to farms with the value added tax on goods (works, services) transferred (rendered) not earlier than October 1, 2018.

7. Grant the right to organizers of cotton and textile production to place on independent basis selection grades of cotton taking into account zone conditions, implementations of evidence-based crop rotations, water - and resource-saving technologies, and also observance of structure of purity of cotton.

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