Drought-affected Kazakhstan farmers to cover costs, accelerate subsidy payments and extend loan terms

The issues of the harvesting campaign and fodder procurement were considered at the Government session chaired by the Prime Minister of the Republic of Kazakhstan Alikhan Smailov. 

Minister of Agriculture Yerbol Karashukeyev noted that the conditions of the current year made it possible to start harvesting work in a timely manner. To date, the republic has harvested 2.4 million hectares of grain and leguminous crops or 14.1%. With an average yield of 11.5 c/ha, 2.8 million tons of grain have been threshed. 

The total harvesting area of agricultural crops this year will amount to 24 million hectares (651.8 thousand hectares more compared to 2022), including the area of grain harvesting 17.4 million hectares. In terms of crops, 13.7 million hectares of wheat, 2.8 million hectares of oilseeds, 188 thousand hectares of potatoes and 165 thousand hectares of vegetables are ready for harvesting. The sowing campaign was carried out in optimal terms with the use of quality seeds. Farmers applied fertilizers in time, timely conducted chemical treatment of crops against weeds and diseases.

However, during the growing season, farmers faced a number of problems related to drought and lack of irrigation water, which affected the condition of crops. In this part, works are underway to declare a state of emergency on a regional scale and to cover farmers' expenses, accelerated payment of subsidies and prolongation of credits.

Deputy Minister of Energy Zhandos Nurmaganbetov made a report on the provision of agricultural producers with fuel and lubricants. Thus, 426 thousand tons of cheap diesel fuel is provided for the harvesting campaign. For July-August 119 thousand tons or 28% were shipped. A number of additional measures have been taken to ensure transparency and control over the movement of fuel. These include assigning separate PIN codes, coloring diesel fuel in yellow, blue and red, and creating separate virtual warehouses.

Akims of Kostanay region Kumar Aksakalov, North Kazakhstan region Aidarbek Saparov, Akmola region Yermek Marzhikpayev, Atyrau region Serik Shapkenov told about preparation and carrying out of works in the regions. 

The Prime Minister emphasized that timely and quality harvesting campaign is one of the priority tasks to ensure food security of the country. 

"In a number of regions harvesting has already begun. The Government has taken all necessary measures on financial and logistical support of the work," Alikhan Smailov said.

Thus, 426 thousand tons of diesel fuel has been allocated at 15% below market price (250 tenge/liter). Budget crediting in the amount of 140 billion tenge and 81 billion tenge for forward purchase of the new grain harvest is envisaged. In addition, 20 billion tenge has been allocated this year to increase the authorized capital of KazAgroFinance to finance the purchase of forage harvesting equipment and mobile irrigation systems.

"As you know, the summer was dry, as a result a number of regions suffered. Less crops will be harvested there. In order to level the consequences of the drought, prompt measures have been taken. Including funds will be allocated from the reserve of the Government," Prime Minister said.

At the same time, the Baiterek holding has been instructed to work out the issue of prolongation and restructuring of debts on loans of agricultural producers affected by the drought.

"The harvested crops will definitely be enough. Kazakhstanis will not be left without bread," Alikhan Smailov emphasized.

At the same time, he added that climate change and water scarcity are becoming a serious challenge for agriculture. In this regard, it is necessary to develop a roadmap to strengthen the rational use of water resources, and regions should actively implement water-saving technologies.  

According to Prime Minister, under current conditions it is also necessary to pay special attention to fodder procurement. To date, good rates of fodder harvesting in Kostanay, Turkestan, Zhambyl, North Kazakhstan and Almaty regions. Low rates are observed in Pavlodar, East Kazakhstan, Atyrau, West Kazakhstan, Mangistau and Abay regions. 

"These regions together with the Ministry of Agriculture need to intensify the pace of work and prevent unreasonable growth of prices for fodder," he pointed out. 

In conclusion, the Head of Government outlined the need to carry out timely work on the removal of grain from the fields and preparation of storage sites, as well as to take measures for quality preparation of fodder stocks and hay for the winter period with the preservation of stable prices.

#Alikhan Smailov #The Prime Minister of the Republic of Kazakhstan #Government session

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