The Kazakh government is working on the issue of introducing a mechanism for subsidizing transport logistics for the export of grain and other strategic agricultural products, the APK News agency reports.
This information was given by Prime Minister Olzhas Bektenov in his response to a request from deputies. Recall that earlier the Senate was concerned about the grain export policy that has developed over many years. Kazakhstan is currently losing ground on the world market, they said. Over the past 10 years, grain and oilseed crops from Kazakhstan were exported to 63 countries, now they have dropped to 44. Soon Uzbekistan will "take" sunflower processing from Kazakhstan, as it did with grain.
Olzhas Bektenov, in turn, noted that the country is increasing the volume of grain processing. By 2027, over 50 grain projects will be implemented in Kazakhstan.
In order to support the production and processing of agricultural products, the state is working to improve the regulatory framework and increase investment attractiveness. Investors are provided with various measures of state support, including preferences. For peasant or farming households, a special procedure for settlements with the budget is provided based on the payment of a single land tax, replacing 6 types of taxes and payments, and they are not VAT payers regardless of turnover.
For the implementation of investment projects, measures of state support are provided to reimburse part of the investments in priority areas, and subsidies are provided for the development of crop and livestock sectors.
The government monitors the implementation of planned investment projects in the agro-industrial complex, and also carries out work to attract potential investors.
There is also an optimization of the mechanisms necessary for the export of products of enterprises and the increase in export potential through the markets of European countries, China, Arab, Indian, and African countries.
At the same time, the Prime Minister noted that the main share of exports (40-45%) is sent by rail to the markets of neighboring Central Asian countries.
"At the meeting I chaired on September 23, 2024, on issues of supporting agricultural entities and the progress of harvesting, a corresponding order was given to introduce a mechanism for subsidizing transport logistics for the export of strategic agricultural products," Bektenov said.
Currently, the ministries of agriculture, trade and integration are carrying out relevant work in these areas.
It is noted that the measure will compensate for the high transport costs of exporters when delivering grain to seaports and ensure competitiveness in terms of price, as well as sell domestic grain products and increase export potential.
In general, issues of production, processing and sale of Kazakhstani agricultural products to foreign markets are under the control of the Government.