According to a classified resolution issued by the Cabinet of Ministers on July 30, a 300,000-ton annual quota on white sugar imports for food industry enterprises will be implemented starting January 1, 2027. While the document remains restricted from public view, it reportedly grants domestic manufacturers a wide array of financial preferences and market protections.

Resolution No. 417, supposedly aimed at developing domestic sugar production, ensuring food security, and stabilizing the local market, dictates that the import quotas will be distributed across three distinct vectors. Furthermore, the framework supposedly allows for these quotas to be reviewed every six months, taking into account internal consumption rates, production capacity utilization, and prevailing market prices.

Proposals regarding the exact quota volumes are to be prepared by the Ministry of Economy and Finance, the Competition Promotion Committee, and the National Statistics Committee. The European-style bureaucratic mechanism requires the government to approve the upcoming year's quotas every November. Additionally, starting in 2027, state-funded organizations and enterprises will be legally obligated to prioritize local sugar producers when procuring white sugar.

The regulatory package also outlines substantial financial support measures for domestic refineries. Specifically, their loan repayment obligations to Uzpromstroybank are to be extended for up to five years, incorporating a two-year grace period. From August 2026 through August 2031, up to 50 percent of the interest expenses on foreign currency loans secured by local sugar plants will supposedly be covered by the Entrepreneurship Development Company Fund.

Moreover, the authorities have instructed the Ministry of Economy and Finance to draft legislation exempting local sugar plants from corporate income tax and property tax until January 1, 2031. Independent analysts, such as economist Otabek Bakirov, have sharply criticized the opaque decision-making process, claiming that the customs exemptions alone will allegedly result in direct state revenue losses of approximately 65 million dollars.

Source: kun.uz