Government of Kazakhstan to support domestic agricultural producers

Measures to support domestic agricultural producers were considered at the State Commission on modernization of the economy under the chairmanship of Prime Minister of the Republic of Kazakhstan Alikhan Smailov.

Minister of Agriculture Aidarbek Saparov noted that prolonged rains in the main grain-growing regions during the harvesting campaign affected the yield and quality of grain. In this regard, agrarians may face difficulties with the sale of products and fulfillment of their obligations under contracts.

Within the framework of fulfillment of the instruction of the Head of State to provide necessary support to agricultural producers affected by the weather conditions of the current year, it was proposed to take the following measures:

  • to establish purchase prices of "Prodkorporatsiya" within the framework of forward purchase in the amount of 120 thousand tenge for wheat of 3 class and 105 thousand tenge for wheat of 4 class;
  • under forward purchase and commodity credit to provide an opportunity to the farmer to fulfill obligations in cash without payment of a penalty or by replacing wheat of the 3rd class with the 4th class at a coefficient of 1.05 or 5%;
  • for those agricultural producers, who are unable to fulfill their obligations, to give an opportunity to prolong the term of the contract for 1 year with reimbursement of bank fees at the rate of 3%.

The Minister emphasized that at the same time with the above measures, farmers ask for direct purchase of grain by "Prodkorporatsiya" from agrarians, especially feed wheat. This will allow to influence the grain market and thus improve the financial situation of grain producers.

Taking into account the above mentioned, it was proposed to carry out direct purchase in the amount of 350 thousand tons at the following prices: 105 thousand tenge for 4th class wheat, 90 thousand tenge for 5th class wheat, 70 thousand tenge for ungraded wheat.

At that, the purchase will be made after allocation of appropriate funds from the budget.

Following the discussion, members of the State Commission supported the proposed measures. Prime Minister instructed the authorized state body to immediately begin work on providing support to agricultural producers.

#Alikhan Smailov #The Prime Minister of the Republic of Kazakhstan #Agriculture #Economic Modernization Commission

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