Uzbekistan’s agricultural land auction reform expands lease autonomy and pricing mechanisms

President of Uzbekistan Shavkat Mirziyoyev signed a decree aimed at increasing the autonomy of agricultural producers in land use, as to publication on Lex.uz.

The decree introduces a revised procedure for the sale and allocation of agricultural land across Uzbekistan starting May 1. The mechanism had been initially applied in February 2025 in selected regions, including Karakalpakstan, Andijan, Jizzakh, Tashkent, and Fergana.

Under the updated rules, agricultural land is to be allocated through auctions while maintaining the integrity of land contours and irrigation systems. Citizens and legal entities residing in Uzbekistan are eligible to participate. Successful bidders will obtain land use rights for a period of 49 years and will independently determine crop types, varieties, and production volumes.

Land plots offered at auction are set within a range of 3 to 50 hectares. In certain cases, based on proposals from regional authorities, larger plots of up to 500 hectares may be offered for industrial plantations and livestock development.

The starting auction price is set at 50% of the standard value of the land. If a lot remains unsold, the price is reduced by 10% at each subsequent auction until it reaches 10% of the standard value or the cost of organizing the auction. For pastures and dryland areas, the starting price is set at 1% of the standard value, covering administrative and preparation costs.

The decree also includes provisions for existing tenants in cotton and grain farming. Those who voluntarily return half of their leased land will receive an extension of lease rights for the remaining portion for 49 years, although these rights cannot be used as collateral for bank loans.

Additionally, within six months, 100,000 hectares of irrigable land from mayorrate reserves are scheduled to be reintroduced to auction. The decree also targets 117,600 hectares of previously unsold land, which will be re-listed for auction under the new system.