Good news for Kyrgyzstan's agriculture: on the initiative of the Association of Berry Growers, the Cabinet of Ministers has decided to abolish VAT on the importation of seedlings. This decision will significantly reduce costs for agricultural businesses and make seedlings more accessible.
Main advantages for farmers
Previously, a VAT of 2 soms per seedling was applied. For example, importing 1 million seedlings required paying a VAT of 2 million soms (approximately $22,988).
According to MOMO (Association of Berry Growers of the Kyrgyz Republic), the funds saved can now be reinvested into business development, advanced cultivation technologies, fertilizers, and other essential needs.
This reform will contribute to increasing production volumes and enhancing the international competitiveness of Kyrgyzstan's agricultural products.
The role of MOMO
MOMO stated, "We express our sincere gratitude to the IBECA program (implemented by the Center for International Private Enterprise, CIPE Europe & Eurasia) for supporting the initiative of the Association of Berry Growers. Thanks to their analysis and advocacy efforts, the VAT exemption has been successfully achieved to the benefit of farmers across the country."
According to Miguel Hermes Ahumada, Kyrgyzstan has optimal conditions for berry cultivation
The Association of Berry Producers of the Kyrgyz Republic was established on December 1, 2022, at the initiative of farmers, processing organizations, product processors, and export companies operating in the berry sector.
According to the association, "Kyrgyzstan has a huge potential to secure its niche in the global berry industry. The diverse natural and climatic conditions of the Fergana Valley, foothill zones, and high mountain valleys of Kyrgyzstan allow for the longest possible harvest period. The temperature fluctuations between day and night, high solar activity, glacial waters, and mineral-rich soils make the flavor of domestic berries unique and extraordinarily rich. MOMO's goal is to increase the cultivated area from 2,000 to 50,000 hectares and, by 2030, raise the annual export volume of berries to $1 billion."
