The Cabinet of Ministers in Uzbekistan has set forth 'recommended' export prices for 60 types of fruits and vegetables, establishing a threshold below which these goods cannot be exported. This directive aims at bolstering exporters, but some experts claim it is poised to adversely affect export activities, jeopardize long-term partnerships, and fail to enhance tax revenues or fortify currency regulation efforts.
The analysts highlight a critical oversight in the policy, which sets uniform prices regardless of the produce's quality, variety, or other distinguishing attributes, undermining the sector's diversity. The regulation is viewed as a detriment to producers and small-scale exporters by curtailing market access, reducing the sector's investment appeal, and diminishing Uzbekistan's desirability as a trading partner.
The implementation of such direct controls is seen as a significant risk to the stability of long-term contractual relationships. Otabek Bakirov, an Uzbek economist, criticized the policy as "another bureaucratic hurdle for exporters," questioning the timing of its enforcement. Moreover, stagnation in Uzbekistan's export figures, attributed to Russia's import ban on fruits and vegetables from most countries, has been noted, with exports hovering between $700 million and $900 million over the past five years. The primary markets for Uzbekistan's fruit and vegetable exports include Russia, Pakistan, Kazakhstan, and China.
Source: timesca.com
