Fruit and vegitable growing in uzbekistan

Removing the import duties on apples, pears, citrus fruits and other fruits

In October 2021, the government of Uzbekistan decided to stimulate the imports of a number of fruits, exempting their import from import duties. The list of such fruits included both widely consumed, such as fresh apples, pears and quinces, and exotic ones: bananas, plantains (fresh or dried), kiwi, fresh or dried citrus fruits, dates, figs, pineapples, avocados, guava, mango and mangosteen and fresh papaya. Prior to this decision, the imports of these fruits was subject to a customs duty rate of 10 to 20%, but not less than $0.2/kg.
The next day after the relevant decree of the government of Uzbekistan was issued, EastFruit published a material where experts analysed what it means for the country’s fruit business, whether it would harm local producers and how it would affect fruit prices and the volume of their trade.
A little more than two months have passed since the decision was announced by the government. From the list of fruits exempted from duty, EastFruit monitors wholesale prices for bananas, oranges, mandarins, apples and pears weekly. Therefore, we can partially assess the effectiveness of such a government decision.
Wholesale prices for orange in Uzbekistan are currently 16,000 UZS/kg ($1.5). This means that oranges in Uzbekistan are now 33% cheaper than on the same date in 2020. Considering the sharp increase in logistics costs over the past year, one might say the result exceeds all expectations and is very positive for the consumers of the country that cannot grow orange in large volumes due to climatic features.
Wholesale prices for mandarin as of December 24, 2021 are 11,000 UZS/kg ($1.0) and they are almost 2 times lower than on the same date in 2020! Wholesale prices for banana dropped to 16,000 UZS/kg ($1.5) and as of the end of December 2021 they were 11% lower than on the same date in 2020. In other words, the reduction in import duties has allowed Uzbek consumers to have better access to fruits not grown in Uzbekistan at a much lower price.
As for apples and pears, the situation is completely opposite so far. From October 22 to December 24, 2021, average wholesale prices for apples increased by 40-64%. In terms of sorts, Renet Simerenko went up in price by 64%, Golden Delicious – by 60%, and Granny Smith – by 40%. As of the end of December 2021, apples were sold in Uzbekistan on average 2.3 times more expensive than at the end of December last year.
During the same period, average wholesale prices for pears increased by 25%. As of December 24, the average wholesale price for pears is 25,000 UZS/kg ($2.3), which is 25% higher than in 2020.
However, this does not mean that the zeroing of duties on the imports of these fruits in Uzbekistan did not work. If the duty had not been canceled, the prices for apples and pears would have been even higher. The main reason for the rise in prices was the weather anomalies described in the first paragraph of our review, that led to a decrease in domestic production. Imported apples are relatively expensive due to the increase in the cost of transportation by 2-3 times this year and the remoteness of Uzbekistan from the main centers of global apple production.

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