It has been decided to introduce additional market mechanisms in cotton cultivation and processing. The Presidential press service reported this.
Starting this year, clusters will place their demand for cotton and price offers on the exchange, and farmers will choose what suits them best and make a futures contract.
Farmers who grow cotton without taking subsidized loans and sell their cotton on the exchange will receive a subsidy amounting to 10 percent of their sale.
Farmers who fully repay the subsidized loan by the end of the year will have 4 percent of the credit returned to them. Thus, their effective interest rate on the loan will decrease from 10 percent to 6 percent.
