BAKU, Azerbaijan, July 1. The Government of Kazakhstan is working on revising the system of subsidizing the agro-industrial complex of the country, the Prime Minister Alikhan Smailov said in his response to an MP’s request, Trend reports via the government.
"In general, the subsidy system will be reformed, first of all, by simplifying subsidy procedures, optimizing its directions, ensuring accessibility for all subjects, stimulating the introduction of modern technologies and attracting investments in the agro-industrial complex, introducing the norm for farmers to take reciprocal obligations to achieve specific indicative indicators," - Smailov noted.
According to him, in connection with the volatility in the world food markets and in order to maintain the stability of the domestic market, an additional 298 billion tenge or $640 million was allocated to finance the agro-industrial complex this year along with the approved 257 billion tenge or $550 million.
He explained that 139 billion tenge or $300 million of the above allocations was spent on subsidizing, 70 billion tenge or $150 million - on spring fieldwork, 20 billion tenge or $43 million – on forwarding purchase of feed, and 69 billion tenge or $150 million – on phyto and veterinary safety, science, and others).
As part of these funds, 80 billion tenge ($170 million) was allocated for the forward purchase of agricultural products for nine crops: soft wheat, durum wheat, barley, sunflower, rapeseed, flax, buckwheat, oats, and soybeans, the prime minister added.
According to Smailov, budget lending is provided to agro-industrial entities for replenishment of working capital for carrying out spring fieldwork, and lending to processing enterprises/end borrowers of processing enterprises - for replenishment of working capital for subsequent lending to agribusiness entities by advancing the purchase of crop products for the implementation of the spring fieldwork.
Besides, according to him, lending to processing enterprises/end borrowers of processing enterprises is also provided for replacement of the borrower's/second-tier banks' own/borrowed funds used to finance the agribusiness entities for the implementation of the spring fieldwork.
"In general, the measures taken are aimed at ensuring the physical availability of food, veterinary and phytosanitary security of Kazakhstan. The policy documents for the development of healthcare, trade, labor and social protection of the population and others envisage issues of ensuring the economic availability of food and food security," concluded the official.
