Chamber of Commerce aims to revive Food Industry Association
The Chamber of Commerce and Industry in Uzbekistan has put forward a proposal to reestablish the Food Industry Association in the country, offering its members customs duty exemptions. The new association, based on the Fat & Oil Association as its legal successor, aims to include various food production and supply enterprises voluntarily joining the association.
The draft proposal suggests granting customs duty exemptions to member enterprises of the Food Industry Association until January 1, 2027. Additionally, the association would have the authority to implement temporary export restrictions on specific oil and fat products based on market demand and price conditions. It would also conduct seasonal technological audits to ensure enterprises have the necessary machinery and equipment.
Furthermore, the draft proposes the establishment of dairy product laboratories by the Agency for Technical Regulation, and the introduction of a mandatory digital labeling system for oil and fat products.
However, economists like Otabek Bakirov express concerns that the proposed association could potentially become too bureaucratic and interfere with the free market dynamics in the food industry. They argue that increased government intervention may do more harm than good, citing examples of similar associations being dissolved in the past due to redundant functions and lack of systematic work with business entities.
The history of food industry associations in Uzbekistan shows that similar organizations existed in the past, with some being dissolved and re-established over the years. The latest iteration of the Food Industry Association was registered in October 2020, with 144 members and a focus on promoting cooperation and development in the food industry sector.
As the proposal for the reestablishment of the Food Industry Association unfolds, it remains to be seen how it will impact the food industry landscape in Uzbekistan and whether it will strike a balance between regulatory oversight and market dynamics.
