The Ministry of Industry and Construction and the Ministry of Agriculture adopted a document excluding subsidies for foreign agricultural machinery, analogues of which are produced in Kazakhstan. The order was signed in order to implement a mechanism for the accelerated renewal of the machine and tractor fleet and the development of local agricultural machinery enterprises. This was reported by the press service of the government of the Republic of Kazakhstan.
According to the government, there are currently eight factories in Kazakhstan producing more than 15 brands of tractors, grain harvesters and forage harvesters of various capacities and modifications. At the end of 2023, the enterprises produced 5,418 tractors worth 113.5 billion tenge and 1,032 combines worth 99.1 billion tenge.
“According to the previously operating mechanism, the difference in the volume of subsidies for imported and domestic equipment was in favor of foreign manufacturers. Thus, 28.3 billion (40.4%) of the total volume of compensation of 70.2 billion was allocated to support local enterprises, 41.9 billion (59.6%) for imported enterprises. This approach reduced sales of products from Kazakh factories. Under the new mechanism, the share of subsidies for foreign manufacturers will be reduced six times - to 6.5 billion (9.3%), while the share of domestic ones is planned to be increased to 63.7 billion (90.7%),” the press service reported .
At the same time, subsidies for foreign agricultural machinery, the production of which is not established in Kazakhstan, will continue. In particular, this is specialized equipment for the production and harvesting of sugar beets, cotton, potatoes and fruits and vegetables, etc. In this case, a subsidy standard of 25% is provided, regardless of the country of production.
The government noted that at the ST ESEMBLY enterprise in 2021, after signing an investment contract with CLAAS, the assembly of TUCANO 450 and TUCANO 580 combines began. Two years later, components from local manufacturers began to be supplied by AgromashHolding KZ, Kazakhstan Agro Innovation Corporation, "Vostokmashzavod" and Reimann. At the enterprise's facilities in 2023, 246 units of self-propelled equipment and 158 units of trailed equipment were assembled. This year the range of tractors has been expanded.
“In general, Kazakh agricultural machinery enterprises currently cover about 80% of the self-propelled equipment market. At the same time, about 90% of farmers in the country are small and medium-sized farmers, for whom preferential leasing instruments and affordable equipment will open up the opportunity to update the machine and tractor fleet,” the press service concluded.