REFORMS IN THE FINANCING MECHANISMS AND MANAGEMENT SYSTEM OF AGRICULTURAL PRODUCTION IN THE COTTON-TEXTILE CLUSTERS OF UZBEKISTAN

This study examines Uzbekistan's transition from state-regulated cotton production to a market-oriented framework between 2019 and 2024. In 2024, significant reforms were introduced, including the liberalization of cotton cluster selection and the implementation of futures contracts for cotton sales. The new financing mechanism allows farmers to auction their cotton at thebeginning of the year, enabling clusters to secure production through futures agreements. Surplus cotton, beyond contracted amounts, can be sold via exchanges or processed independently. Additional initiatives encompass permitting all legal entities with at least two processing cycles to purchase cotton, introducing yield-based tax incentives, enabling land-use rights as collateral for bank loans, and subsidizing interest rates through the Agricultural Financial Support Fund. These measures aimto enhance supply chain efficiency, foster competition, and improve financial accessibility for farmers. Collectively, the reforms are designed to establish sustainable market relations and strengthen Uzbekistan's position in the global textile industry. the economic and environmental sustainability of the region.