KARAKALPAKSTAN IS A WORLD LEADER IN GROWING AND HARVESTING LICORICE ROOT.

In Karakalpakstan, five plants were established for 2.3 million US dollars for the manufacture of drugs from licorice root, more than 2 million tons exported to China.

TASHKENT, 12 Jan-Sputnik. The Ministry of foreign economic relations, investments and trade has developed a draft resolution of the President "on measures of production and industrial processing of licorice in the Republic of Uzbekistan", which is being discussed at the EPIGU.

The discussed document proposes to develop a program for the establishment of plantations for the production of licorice (licorice) in Karakalpakstan for 2017-2021.

It provides, in particular:

make a map of the natural fishing areas of licorice in order to determine the volume of quotas for the preparation of raw licorice; 

determine the available land on which it is possible to create industrial plantations for the cultivation of licorice (licorice);

it is also proposed to release farms that create industrial plantations of licorice naked, as well as enterprises engaged in the processing of licorice root (licorice) and the production of finished products from it for a period up to January 1, 2022 from payment:
harvesting of planting material (seeds, cuttings) to create plantations;

land tax, income tax, property tax of legal entities, tax on improvement and development of social infrastructure, a single tax payment for small businesses, as well as mandatory contributions to the National road Fund and extra-budgetary Fund for reconstruction, overhaul and equipping of secondary schools, vocational colleges, academic lyceums and medical institutions under the Ministry of Finance;

customs payments (except for customs clearance fees) for equipment, raw materials, materials and components imported for own production needs, as well as construction materials not produced in the Republic and imported within the framework of projects implementation according to the lists approved by the Cabinet of Ministers of the Republic of Uzbekistan.

One of the points of the discussed document is the introduction of a four-year grace period for the credits allocated by Asaka and other commercial banks to economic entities for the creation of industrial plantations and enterprises engaged in industrial processing of licorice (licorice) within the framework of the decree of the President of Uzbekistan dated September 16, 2016 "on the program of measures for the further development of the pharmaceutical industry of the Republic for 2016-2020".

Last year, as already reported by nuz.uz with reference to the resolution of the Cabinet of Ministers of March 23, 2016 "on measures to further improve the use of plants for the development of the processing industry of the Republic", processing enterprises of pharmaceutical and food industry of Uzbekistan expanded the raw material base for processing of licorice root.

The document provided for the harvesting (collection) of licorice naked on the lands of agricultural lands by individuals and legal entities for processing organizations of the Republic producing root extract, carried out without obtaining a permit for special use.

According to the chamber of Commerce and industry of Uzbekistan, more than thirty enterprises and companies with different forms of ownership are engaged in harvesting and processing of licorice root in various regions of Uzbekistan.

Traditionally, the most active licorice root (due to climatic features) is grown in the North-West of Uzbekistan — in Karakalpakstan and Khorezm region.

In Karakalpakstan licorice is called"Boyan". Since 2003 it operates JSC "Karakalpakboyan" (Sochi). Its main activity is the preparation of licorice root and its pressing. In addition, the company is engaged in cultural planting of this plant and the cultivation of licorice. In recent years, with the support of commercial banks in Karakalpakstan, five new production facilities with a total cost of 2.3 million dollars and a capacity of 1.5 thousand tons of medicinal product have been created.

More than 70 per cent of licorice grown and processed in the country is exported abroad. Licorice root in many countries of the world is experiencing a Renaissance: in large quantities it is consumed by the world food industry, pharmacological and cosmetic companies.

According to foreign experts, the main consumer of medicinal raw materials from Uzbekistan is China, where the demand for this product is steadily growing.

According to experts of the regional program for sustainable agricultural development in Central Asia and the Caucasus (SASCOC), Uzbekistan in 2010 was exported to China more than 2 million tons of the root of this plant, which is 47,74% of the total volume of Chinese imports of licorice.

In General, the import of licorice extract from Uzbekistan to China from 2007 to 2011 increased 65 times in value and 30 times in volume.

In 2012, Uzbekistan exported naked licorice to China for $9.9 million.

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