From the point of view of food security, domestic agricultural producers must produce a volume of the most important products sufficient for domestic consumption.
To support domestic agricultural producers, a state program was applied - a mechanism for the forward purchase of agricultural products.
In this article, we will tell you about the conditions for farmers to take part in the forward purchase.
The principle of forward purchase is the acquisition by the state on the basis of prepayment of agricultural products at approved preliminary purchase prices.
The state finances the purchase of raw materials for the production of products included in the list of socially significant, which include:
Preliminary purchase prices for agricultural products purchased through forward purchase.
The quality indicators of purchased agricultural products must meet the requirements established by national standards.
There are no commissions and interest rates for the use of funds. The settlement with farmers for the actually delivered agricultural products will be made on the basis of market prices in the autumn.
The deadline for fulfilling obligations:
The final market price is set by the Corporation depending:
- on the prices formed on the market during the delivery period,
- on the volume of agricultural production,
- on export prices for similar agricultural products at the main border crossings.
If the market price exceeds the forecasted purchase price, the volume of delivery remains unchanged. At the same time, the payment of the difference in prices is made at the expense of the Corporation's own funds.
If the market price is set lower than the forecasted purchase price during the delivery period, the volume of agricultural products is increased by the difference in prices. It is allowed to supply agricultural products for the amount of advance payment in the amount based on the purchase price, minus a discount of 5% established by the Corporation at the time of delivery of agricultural products.
A forward (eng. forward contract), translated from English - "future contract", forward contract.
A forward contract is a binding fixed-term contract under which the buyer and seller agree to supply goods of a specified quality and quantity or currency on a certain date in the future.
The price of the goods, the exchange rate and other conditions are fixed at the time of the transaction.
Forward purchase is the purchase of agricultural products from agricultural producers (APAP) on the terms of advance payment after the provision of collateral and additional payment after the delivery of agricultural products in the autumn period. APAP - individuals or legal entities engaged in the production of agricultural products, including through the creation of a simple partnership /consortium.
The volumes of forward purchase and the amount of funds between the regions are distributed depending on the structure of the sown areas of the regions (hereinafter referred to as Distribution) and on the volume of purchases of previous years.
The structure of acreage by region is provided by the Ministry of Agriculture of the Republic of Kazakhstan. The distribution is approved by the Board of JSC "National Company "Food Contract Corporation" (Corporation). Farmers of the following regions can take part in the state program:
Candidates approved by the Coordinating Council– a collegial body created by local executive bodies, can get into the program. The SHTP must meet the following requirements:
1) the absence of arrears in the payment of taxes, arrears in the payment of mandatory pension contributions, mandatory occupational pension contributions and social contributions;
2) no overdue debt to financial institutions for more than 30 days;
3) the absence in the lists of insolvent debtors, in respect of which there are court decisions on the application of a rehabilitation procedure or on the recognition of bankruptcy, as well as the absence of unfulfilled judicial acts on the recovery of the amount / enforcement of obligations;
4) the absence of facts of transfer in favor of the Corporation of grain receipts unsecured by the actual availability of grain, established by judicial acts and/ or materials of criminal /civil/administrative cases;
5) the absence of the Supplier and/or affiliated (related) persons with the Supplier (if it is possible to establish affiliation) of disputed legal relations with the Corporation and/or with its subsidiaries and affiliates;
6) other requirements stipulated by the internal regulatory documents of the Corporation.
The participant of the program must provide guarantees of fulfillment of obligations - from social and entrepreneurial corporations, second-tier banks (within the established limits approved by the Corporation).
In case of conclusion of a forward purchase agreement, it is obliged to supply products of proper quality to licensed grain receiving enterprises on EXW "franco-plant" terms (Incoterms-2020).
The information about the beginning of the forward purchase is posted on the Internet resources of the Ministry of Agriculture of the Republic of Kazakhstan, JSC "NC "Food Corporation"(Corporation) https://www.fcc.kz/.
Applications from agricultural producers for participation in the forward purchase are accepted in electronic form on the Corporation's Internet resource (https://www.fcc.kz/), the list of required documents provided by potential suppliers is sent by e-mail:zakup@fcc.kz. or in paper form in the regional offices of the Food Contract Corporation at the following addresses:
For more information on forward purchase, please contact the central office of the Food Corporation:
8 (717-2) 59-12-32 (вн. 2358), 59-12-39, 59-13-07.
The local akimats (city halls) approve the applications.
When submitting an application for participation in a forward purchase, the following documents must be submitted.
Legal entities:
1) application in the form provided by the Rules;
2) certificate of state registration (re-registration) of a legal entity;
3) a copy of the Charter with all amendments and additions thereto, as well as, if the Charter does not contain information about the composition of the founders/participants, an extract from the constituent documents containing information about the founder or the composition of the founders or an extract from the register of shareholders/ participants;
4) the original decision of the authorized body of the Potential supplier on the conclusion of the Contract and the provision of Security;
5) for VAT payers - an extract from the electronic database of the register of VAT payers, or if the electronic database of the register of VAT payers temporarily does not function, a certificate from the tax authority that the Potential supplier is a VAT payer;
for non-VAT payers - an extract from the electronic database of the register of VAT payers, or if the electronic database of the register of VAT payers temporarily does not function, a certificate from the tax authority stating that the Potential supplier is not a VAT payer;
6) a copy of the decision of the authorized body of the Potential supplier on the appointment of the head of the executive body, certified by signature and seal (if available) Potential supplier;
7) a copy of the identity card of the head of the executive body, as well as if the application and/or Contracts are not signed by the head of the executive body - a document confirming the authority of the representative of the Potential supplier to sign the application and/or Contracts (power of attorney/notarized copy of the power of attorney and a copy of the identity document of the authorized person);
8) consent of the Potential Supplier (consortium members) to issue a credit report to the recipient of the credit report from the credit bureau in the form provided for in Appendix No. 1 to the List of Documents for participation in the forward purchase conducted by the Corporation;
9) consent of the Potential Supplier (consortium members) to provide information about him to the credit bureau in the form provided for in Appendix No. 2 to the List of Documents for participation in the forward purchase conducted by the Corporation;
10) a document issued by the tax authority, valid for a month on the date of filing the application, confirming the presence/absence of a Potential supplier's arrears on taxes and other mandatory payments to the budget;
11) certificates of servicing STB and other financial institutions, valid for a month on the date of application submission, on the presence/absence of loan debt, on the availability of accounts and on turnover, indicating incoming and outgoing balances of money at the beginning and end of the month, respectively, for the last twelve months and on arrears on payment documents not paid on time in the STB;
12) a document of the Guarantor's intention to provide a Guarantee as Security and documents in accordance with the list in accordance with Annex No. 6 to the Rules;
13) in case of participation in the forward purchase of a Potential supplier in the form of a consortium, a notarized copy of the agreement on joint economic activity is provided, with the obligatory condition that the obligations and responsibilities of the parties involved are solidary.
Individuals:
1) Application in the form provided for by the Rules;
2) a copy of the identity document of the Potential supplier, as well as if the application and/or Contracts are not signed by the head of the peasant/farm - a document confirming the authority of the representative of the Potential supplier to sign the application and/or Contracts (a notarized copy of the power of attorney and a copy of the identity document of the authorized person);
3) a copy of the document confirming the right to engage in entrepreneurial activity;
4) the original certificate of the tax authority confirming the list of members of the peasant/farm or information on the number of members of the peasant/farm, certified by the head of the peasant/farm, or in the case of participation in the forward purchase of a potential supplier in the form of a simple partnership, a notarized copy of the agreement on joint economic activity is provided, with the obligatory condition that the obligations and responsibilities of the participants of the parties are solidary;
5) consent/a copy of the power of attorney (notarized) of all members of the peasant/farm (if there are members) to conclude a Contract and provide Collateral, or in the case of participation in the forward purchase of a Potential supplier in the form of a simple partnership, copies of notarized powers of attorney issued to a participant of a simple partnership who will act on behalf of all participants in joint activities are provided;
6) for VAT - extract from the electronic database of the register of VAT payers, or if the electronic database of the register of VAT payers temporarily will not function, a certificate from the tax authority that the Potential supplier is a VAT payer;
for VAT payers - an extract from the electronic database of the register of VAT payers, or if the electronic database of the register of VAT payers temporarily will not function, a certificate from the tax authority that the Potential supplier is not a VAT payer;
7) consent of a Potential supplier (participants of a simple partnership) to issue a credit report to the recipient of a credit report from a credit bureau in the form provided for in Appendix No. 1 to the List of Documents for participation in a forward purchase conducted by the Corporation;
8) consent of a Potential supplier (members of a simple partnership) to provide information about him to the credit bureau in the form provided for in Appendix No. 2 to the List of Documents for participation in the forward purchase conducted by the Corporation;
9) the original document issued by the tax authority, valid for a month on the date of filing the application, confirming the presence/absence of a potential supplier of arrears on taxes and other mandatory payments to the budget;
10) certificates of servicing STB and other financial institutions, valid for a month on the date of filing the application, on the presence/absence of loan debt, on the availability of accounts and on turnover, indicating the incoming and outgoing balances of money at the beginning and end of the month, respectively, for the last twelve months and on arrears on payment documents not paid on time in the STB;
11) a document of the Guarantor's intention to provide a Guarantee as Security and documents in accordance with the list in accordance with Annex No. 6 to the Rules.