Equipment for leasing and cheap financing — S. Zhumangarin held a meeting on the development of the agricultural sector of the country
Deputy Prime Minister - Minister of Trade and Integration Serik Zhumangarin held another informal meeting with a group of deputies of the Majilis of the Parliament headed by Chairman of the Committee on Agrarian Issues Serik Egizbayev on problematic issues of the agricultural sector. The discussions were attended by Minister of Agriculture Yerbol Karashukeyev, Vice-Ministers of National Economy, Industry and Infrastructure Development, heads of the Food Corporation, NUH Bayterek, Agrarian Credit Corporation, deputies of the Committees on Agrarian Issues, Legislation and Judicial and Legal Reform.
Deputy Zhiguli Dairabayev raised the issue of financing leasing programs of agricultural machinery. According to the Mazhilisman, the average wear of the fleet of operating equipment is 76%, and the level of technological renewal has increased from 2% in 2017 to 4.4% in 2022. Whereas the required update rate should reach at least 10%. Among the factors hindering the achievement of the required level of renewal are expensive interest rates on market leasing programs, lack of available financing, the rise in price of diesel fuel and lower prices for cereals. The deputy proposed to allocate 100 billion tenge for a leasing program with a low interest rate and without an advance payment to upgrade together about 2,200 units of tractors and combines.
MP Aidarbek Khojanazarov proposed a set of measures that, in his opinion, will help the agricultural industry solve the acute problem of financing on a residual basis.
«The first tool that we are already discussing in the Parliament is the use of agricultural receipts and securities, which will allow the producer to sell the harvest that has not yet ripened. The second tool is the guarantee of loans from second–tier banks to the agricultural sector through the Agrarian Credit Corporation, which will attract up to 4 trillion tenge to the sector. And the third tool, which has already proved its worth and is popular, is the expansion of the direction of forward financing. For example, to issue commodity loans for the future harvest not only with seeds, but also with pesticides, herbicides, fuels and lubricants», — the deputy said.
Aidarbek Khojanazarov also raised the issue of purchasing raw materials and supporting sunflower seed producers.
«Processing is important to us, and, of course, we do not want to develop the processing industry of neighboring countries at the expense of Kazakhstan's sunflower, but now there is a situation where seed producers do not receive the required subsidies, and processors buy cheap raw materials from Russia, and not from domestic farmers», — he said.
The proposals caused heated discussions among the participants. Minister of Agriculture Yerbol Karashukeyev proposed to create a working group to work out changes to the subsidy rules so that sunflower producers could receive state support in accordance with the production cycle. On all other issues, it was decided to organize a round table with the Food Corporation, at which solutions should be developed on how the state-owned company can become a full-fledged player in the market.
«The food corporation should be a strong and active tool, and when necessary passive, so as not to exert excessive influence on the market. As for the export duty on sunflower, each issue has two sides, and in the case of the duty, these are the interests of the producer and the processor. But there is also a state policy that aims to diversify the market and increase the production of processed products. And here we are going in the right direction. If we take statistics, we see a significant increase in the volume of processing. Export duty is a fair tool. All proposals of market participants will be considered. A balanced decision will be made»,Serik Zhumangarin summed up.