The Government of the Republic of Kazakhstan will support domestic agricultural producers

The Government of the Republic of Kazakhstan will support domestic agricultural producers

Measures to support domestic agricultural producers were considered at the State Commission on Economic Modernization chaired by Prime Minister of Kazakhstan Alikhan Smailov.

Agriculture Minister 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, farmers may have difficulties with the sale of products and the fulfillment of their obligations under contracts.

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

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

The Minister stressed that at the same time with these measures, farmers are asked to make a direct purchase of grain from farmers by the Food Corporation, especially feed wheat. This will make it possible to influence the grain market and thereby improve the financial situation of grain producers.

Taking into account the above, it is proposed to carry out a direct purchase in the amount of 350 thousand tons at the following prices: 105 thousand tenge for grade 4 wheat, 90 thousand tenge for grade 5 wheat, 70 thousand tenge for non–grade wheat.

At the same time, the purchase will be carried out after the allocation of appropriate funds from the budget.

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