BAKU, Azerbaijan, May 15. Asian Development Bank (ADB) and Indorama Agro LLC, a wholly owned subsidiary of Indorama Corporation (IRC) and a largest cotton enterprise in Uzbekistan have signed a $15 million loan to support farmers in Uzbekistan, Trend reports via ADB.
The loan will be used to finance advances to 3,600 farmers and other agricultural workers engaged in cotton and wheat production, as well as to prove direct agronomic support to enhance their resilience to climate change and promote sustainable agricultural practices.
"This financing will help attract critical private sector investment into agriculture to help farmers adapt to the effects of climate change while supporting recovery from COVID-19. It will help to improve the region’s food security while developing longer-term solutions to strengthen sustainable agricultural systems," ADB Director General for Private Sector Operations Suzanne Gaboury said.
In his turn, Indorama Corporation Vice-Chairman Amit Lohia said that working with ADB will help the company leverage expertise to further improve environmental, social, and managerial practices.
"We look forward to working collaboratively to advance our shared objectives. Together, we are confident that we can drive positive change in growing sustainably farmed cotton and other crops," he added.
Meanwhile, Uzbekistan's agriculture employs almost 3.7 million people, making the sector the largest source of jobs in the country, with cotton and wheat production dominating it. In 2021, almost 580,000 metric tons of cotton were produced, making Uzbekistan the eighth largest producer in the world. Uzbekistan imports about one-third of its annual wheat demand, so domestic production is crucial for its food security.
Uzbekistan joined ADB in 1995. During 28 years of cooperation, ADB has committed loans, grants, and technical assistance amounting to $10.8 billion to the country.