The Association of Non-Alcoholic Beverage and Juice Producers of Uzbekistan (UzBev) has voiced criticism regarding the plans to introduce a quota on white sugar imports. This restriction, set to take effect on January 1, 2027, stipulates an annual limit of 300 thousand tons. This was reported by Alfiya Musina, the association's executive director, to the publication 'Gazeta.'
According to business representatives, such restrictions could trigger an increase in raw material prices, raise the cost of finished products, and exacerbate inflationary processes. Furthermore, UzBev expresses doubts about the legality of the new mechanism, its compliance with World Trade Organization (WTO) norms, and the lack of public access to the relevant government decree.
The association's statement emphasizes that this measure may narrow access to vital raw materials, leading to increased costs for local producers and effectively shifting the burden of supporting one industry onto the entire food industry and end consumers.
UzBev also points out the mismatch between the established quota volume and the actual needs of the domestic market. Uzbekistan's annual sugar requirement is estimated to be in the range of 650–700 thousand tons. According to Customs Committee data, from January to September 2026, the country imported 652.8 thousand tons of sugar and sugar raw material worth $440.1 million, which is 36% higher than the same period last year.
The association insists that the government provide explanations on how the 300 thousand ton quota can meet enterprise needs and how potential raw material shortages will be prevented. It is noted that customs statistics include sugar raw material used for processing, whereas the restriction applies exclusively to white sugar for specific producer groups.
Alfiya Musina believes that state aid to sugar factories, which continue to rely on imported raw materials and financial assistance, should not create additional difficulties for other domestic enterprises. The head of UzBev warned that restricting access to sugar risks reducing the competitiveness of Uzbek products and intensifying inflation, as the food industry is a source of investment, exports, jobs, and tax revenue.
A significant part of the association's complaints relates to the quota introduction process. Cabinet of Ministers Decree No. 416 of July 29, 2026, defines the general procedure for applying tariff quotas, allowing the import of goods exceeding the limit upon payment of the corresponding customs duty. However, the subsequent Decree No. 417, establishing the white sugar quota, does not specify the duty rates both within and above the quota, nor does it clarify the possibility of continuing imports after the limit is exhausted.
Alfiya Musina suggests that this mechanism may essentially function not as a tariff quota but as a quantitative quota that restricts the very possibility of import. This raises questions regarding WTO rules, to which Uzbekistan is preparing to join. Article XI:1 of the General Agreement on Tariffs and Trade (GATT 1994) prohibits quantitative import restrictions, except in cases provided for by the rules.
Moreover, UzBev highlights discrepancies in quota distribution: Decree No. 417 mandates electronic auctions, which is absent from the general procedure No. 416. The association demands the publication of bidding criteria, volume allocation rules, guarantees of equal access, and measures against the concentration of quotas among a small number of importers, as a lack of transparency creates a risk of limiting competition.
UzBev has also drawn attention to privileges granted to domestic sugar producers. The document provides for priority supply of local production sugar to state structures and enterprises. The association fears that in practice, this could lead to imported sugar being excluded from procurement due to its origin. According to UzBev estimates, this approach requires verification against the principle of national treatment enshrined in GATT Article III:4.
The second issue concerns financial support: Decree No. 417 provides for debt restructuring, attracting $50 million in investments, compensating part of the interest, and developing tax incentives. Although subsidies are not prohibited by the WTO, UzBev stresses that targeted support for specific companies or industries, especially if it replaces imports with domestic goods, requires legal assessment.
Alfiya Musina's key complaint was that Decree No. 417 is not publicly accessible. This document, concerning numerous entrepreneurs, is classified as 'for official use only' (DSP) and is not posted in the national Lex.uz database. In the opinion of the head of UzBev, this prevents companies from assessing new requirements and adjusting their plans in advance.
The association requests the Ministry of Justice to clarify three issues: the basis for restricting access to the document, the permissibility of applying unpublished acts to businesses, and the relationship between the provisions of Decrees No. 416 and No. 417. Musina recalled President Shavkat Mirziyoyev's calls for 'shaffoflik'—openness and accountability.
UzBev calls for the publication of Decree No. 417, holding open discussions involving businesses and experts, and conducting economic and legal assessments of the restrictions' consequences. Alfiya Musina concluded that protecting one industry should not weaken thousands of others, and sustainable growth is achieved through predictable rules and fair competition.
Cabinet of Ministers Decree No. 417 of July 30, 2026, approved the introduction of an annual quota for white sugar imports amounting to 300 thousand tons, starting January 1, 2027. These volumes are distributed among three groups: beverage producers (100 thousand tons), confectionery producers (100 thousand tons), and producers of other food products (100 thousand tons).
It is planned that the distribution will be carried out through electronic auctions, and a special platform must be launched before December 1, 2026. The government reserves the right to review volumes every six months based on consumption, plant utilization, and price situation. The decree also provides for support for two key producers—Angren Shakar and Xorazm Shakar, allowing them to extend loan repayment periods with 'Uzpromstroybank' up to five years with a two-year grace period, as well as compensating part of the interest expenses and preparing tax incentives until 2031.
Sugar production in Uzbekistan is declining: in the first half of 2025, output was 165.5 thousand tons, compared to 227.8 thousand tons in 2024 and 332.6 thousand tons in 2023. Despite this, the total design capacity of the two operating plants exceeds 900 thousand tons per year, with a significant portion of raw materials being imported. As of October 1, 2025, the 20% excise tax on white sugar imports was abolished, but the 20% customs duty remains in effect.
