World Grain - January 2023 - 18

COUNTRY FOCUS
KEY FACTS
FOCUS ON
UZBEKISTAN
Key consumer of wheat is working
toward market-oriented economy
by Susan Reidy
Agriculture is an important sector for Uzbekistan, a double landlocked
country with the highest population in Central Asia, accounting
for 25% of GDP and employing 26% of the labor force.
With wheat consumption estimated at 8.5 million tonnes in
2022-23, it is one of the largest key consumers of the grain in
Central Asia. Domestic wheat production will cover about 78%
of that expected consumption.
Uzbekistan imports high quality wheat from Kazakhstan, but
in recent years has relied less on flour imports from that nation.
Uzbek millers also have taken market share from Kazakhstan
millers exporting to Afghanistan.
Wheat imports in Uzbekistan averaged 3.2 million tonnes over
the last five years while exports, mostly wheat flour to Afghanistan,
increased to 1 million tonnes in 2021, according to the US
Department of Agriculture (USDA).
Uzbekistan has seen major reforms aimed at building a more
open and market-oriented economy, including a switch to market
prices starting June 1, 2022, for the purchase and sale of grain.
The government is planning to auction facilities
from the state-owned milling holding company
Uzdonmahsulot, although the process
has experienced delays.
The government's policies emphasize
the importance of the
agricultural sector as a driver of
an export-oriented economy
and focus on revitalizing rural
areas and the production
potential
of small-holder
(dehkan) farms.
Crop production
Uzbekistan has a land area of
44.8 million hectares of which
4.5 million hectares is arable.
Its primary cultivated crops include
cotton, wheat, barley, rice,
corn, potatoes and fruits and vegeta18
Capital:
Tashkent
Population: 31,104,937 (2022 est.)
Religions: Muslim 88% (mostly Sunni), Eastern
Orthodox 9%, other 3%.
Location: Central Asia, north of Turkmenistan,
south of Kazakhstan.
Government: Presidential republic, highly authoritarian.
Chief of state: President Shavkat
Mirziyoyev (interim starting Sept. 8, 2016; elected
Dec. 4, 2016). Head of government Prime
Minister Abdulla Aripov (Dec. 14, 2016).
Economy: Uzbekistan is a doubly landlocked
country in which 51% of the population lives in
urban settlements. The agriculture-rich Fergana
Valley, in which Uzbekistan's eastern borders are
located, has been counted among the most
densely populated parts of Central Asia. Since
gaining its independence in September 1991,
the government largely has maintained its Soviet-style
command economy with subsidies and
tight controls on production, prices, and access
to foreign currency. Despite ongoing efforts to
diversify crops, Uzbek agriculture remains largely
centered on cotton. Uzbekistan is the world's
fifth-largest cotton exporter and seventh-largest
producer. Uzbekistan's economic growth has
been driven primarily by state-led investments,
and exports of natural gas, gold, and cotton
provides a significant share of foreign exchange
earnings. Recently, lower global commodity
prices and economic slowdowns in neighboring
Russia and China have hurt Uzbekistan's trade
and investment and worsened its foreign currency
shortage. Aware of the need to improve
the investment climate, the government is taking
incremental steps to reform the business sector
and address impediments to foreign investment
in the country. Since the death of first President
Islam Karimov and election of President Shavkat
Mirziyoyev, emphasis on such initiatives and government
efforts to improve the private sector
have increased. As a part of its economic reform
efforts, the Uzbek government is looking to expand
opportunities for small and medium enterprises
and prioritizes increasing foreign direct
investment. In September 2017, the government
devalued the official currency rate by almost 50%
and loosened currency restrictions to eliminate
the currency black market, increase access to
hard currency, and boost investment.
GDP per capita: $7,000 (2021); inflation: 12.5%
(2017 est.); unemployment: 5% (2019 est.).
Currency: Uzbekistani soum (UZS): 11283.55
soums equal 1 US dollar (Dec. 20, 2022).
Exports: $14.52 billion note: data are in current
year dollars (2020 est.): gold, natural gas, cotton
fibers, copper, ethylene polymers (2019).
Imports: $22.56 billion note: data are in current
year dollars (2020 est.): cars and vehicle parts,
packaged medicines, refined petroleum, aircraft,
construction vehicles (2019).
Agriculture: 17.9% (2017 est.) of GDP and 25.9%
of the labor force.
Internet: Code: .uz; 17.2 million (July 2022) users.
Source : CIA World Factbook
January 2023 / World Grain / World-Grain.com
http://www.World-Grain.com
World Grain - January 2023

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