As EastFruit experts had already stated in the past, the fruit and vegetable trade in Uzbekistan was hit hard in May 2024, in the shape of the minimum export price for produce that was fresh that significantly impacted the situation and the opportunities to export of fruits and vegetables. It is clear that the negative effects of such a move are not far away. In the initial month, exporters of fruit and vegetables and the farmers who cultivate their crops and the national budget have experienced significant loss. The whole thing is taking place against the backdrop of a slowdown in exports of vegetable and fruit, as well as a very difficult environment for some of the country’s major sectors, like such as the greenhouse industry and greenhouses, which Uzbekistan has been losing slowly to Turkmenistan.

In this report, EastFruit provides specific examples that show the negative effect of the export price minimum of fruits and vegetables on all the people who make up the value chain.

We should remember that in the first week of the month of May in 2024, suggested prices for exports of both vegetables and fruits were enacted in Uzbekistan. Exporters were then permitted to ship fruits and vegetables to the world at a price no less that 20% suggested price. But, as per a decision from the Cabinet of Ministers of May 11, 2024, recommended prices were replaced with those that were acceptable to the lowest. The official government hasn’t considered that the prices of fruit and vegetables fluctuate dramatically in both countries as well as by category of quality – at times, as high as 10 times! Nobody was concerned with the fact that prices of fruits and vegetables, particularly those that are young, like the ones Uzbekistan has a specialization in, typically vary by 2 – or more every day. Therefore, setting weekly minimum prices was initially a naive concept.

Based on Nodirbek Musaev, head of the company that exports Musaevs Exim LLC, such an approach to price control, as well as the method to implement it has led to several issues that Uzbek exporters are facing at the peak of the season when they are able to ship fresh fruits and vegetables that originate from Uzbekistan.

“The minimum export price for vegetables and fruits are reviewed and fixed every week. Once prices have been set the entire population must then wait two days to submit their application. However, during the season of exports of fruits and vegetables that are fresh The market can be more lively, i.e. the prices are constantly changing. Particularly during the busy stage of harvesting, wholesale prices can fluctuate between the hours of day. It is an inflexible procedure for setting minimum acceptable export rates, which causes a lot of problems for Uzbek exporters as well as growers.” Explains Nodirbek Musaev.

Check out the entire article on east-fruit.com