Uzbekistan is preparing to launch a major sugar project, with Nile Sugar set to begin work on a $450 million investment in the Jizzakh region from March, Investment, Industry and Trade Minister Laziz Kudratov said in an interview with Uzbekistan 24 TV.
The project, funded through direct foreign investment, will cover the entire production chain—from cultivating sugar beet to processing it into finished sugar. Kudratov said the plant is expected to produce up to 200,000 tonnes of sugar annually, making it one of the country’s largest projects in the sector.
Agriculture Minister Ibrohim Abdurakhmonov said President Shavkat Mirziyoyev has directed officials to speed up the project and keep it under close supervision.
“All the necessary documents have been finalized, land plots have been allocated, and the investments are ready. We have been tasked with launching the project within a compressed timeframe,” Abdurakhmonov said.
Plans for Nile Sugar’s entry into Jizzakh were first reported in July 2023. The project includes sugar beet cultivation across about 52,000 hectares. In 2024, the Agriculture Ministry identified 50,000 hectares in the Gallaorol and Farish districts for beet farming and set aside 170 hectares for building the sugar plant.
On January 23, Kudratov met Nile Sugar CEO Emad Farid, and both sides signed a final protocol confirming their readiness to continue coordinated work on preparing and implementing joint projects.
Officials believe the agreements will help move cooperation with Nile Sugar into the implementation stage, support the phased rollout of joint initiatives, and encourage the transfer and local adoption of modern agro-industrial and processing technologies in Uzbekistan.
The push to expand domestic production comes as local manufacturers raise concerns about high sugar prices. At a government meeting on January 21, UzBev Association Executive Director Alfiya Musina called sugar costs a “pain point for all local producers.” Imported white sugar is currently subject to a 20% import duty.
Deputy Prime Minister Jamshid Khodjaev said the country plans to abolish excise taxes from 2027, likely to align tax rates for imported and domestically produced goods.
“We have two major sugar production projects. I hope that within two to three years we will be able to increase and stabilize local production,” Khodjaev said.
Uzbekistan reinstated a 20% excise tax on imported white sugar in 2020 after temporarily cutting it to zero during the pandemic. Since 2021, the tax has remained at 20%, and the earlier zero customs duty has been removed. Under a presidential decision, excise taxes on imported white sugar will be scrapped from October 1, 2025, while the customs duty will continue.
Data from the National Statistics Committee shows Uzbekistan produced 165,500 tonnes of sugar between January and June 2025, down sharply from 227,800 tonnes during the same period in 2024 and 332,600 tonnes in 2023.
