Publication Details
Abstract
The access with credit related agricultural production and credit and agriculture are explored in this study about Uzbekistan. Although lending is considered a necessary condition for production expansion, the provision of affordable financing presents a challenge for small agricultural producers. This existing research underscores the role of credit in productivity, but little consideration has been given to whether commercial bank lending volumes today are associated with increased agricultural output. To it, this study examines statistical data from the Central Bank and the national statutory committee. Loan volumes and interest rates were compared, as well as the structure and annual growth of agricultural producers. And results demonstrate that while commercial banks spend considerable sums on small business activity, the share going to agriculture is still quite low, and has decreased in recent years. Farmersare discouraged from borrowing, given high-interest rates and short loan tenors, while the analysis showsno clear correlation between volumes of credit and growth in agriculture. Current lending conditions fail to meet the need of the sector, the results suggest.It emphasizes the need for long term, low interest financing to provide secure agricultural development while raising the financial strength of small producers.