An additional allocation of up to
400 billion tenge will be made for spring field work in Kazakhstan. The
Ministry of Agriculture has announced that farmers will receive subsidized
interest rates on loans. For this purpose, 60 billion tenge will be earmarked
from the government’s reserve to reduce loan costs and provide guarantees for
agricultural producers. This approach will allow loans to be provided to farmers
at five percent per annum. Moreover, in cases where collateral is not
available, loans will be secured for up to 85 percent of the loan amount.
Overall, 180 billion tenge has been allocated for preferential lending for this
year’s sowing campaign. Furthermore, as part of the additional funding for
agricultural activities, the implementation of a commodity loan program for
200,000 tonnes of grain has begun. The Ministry of Agriculture has prioritized
the timely completion of spring field work as one of its key objectives.
“This is the first time in Kazakhstan’s history. Also, a first-ever mechanism which provides for interest rate subsidies to be directly paid to financial institutions, and for farmers to receive a net five percent credit will be implemented as well. Thus, we will increase the volume of financing for spring-field and harvesting work to 580 billion tenge. Subsidies will be provided for the purchase of seed material, mineral fertilizers, plant protection agents, and for processing. Furthermore, we subsidize water supply services, so that the standard is lower for agricultural producers. Regarding innovations in state support, since mid-March, we have introduced advance subsidies for mineral fertilizers, providing the manufacturer with 60 percent of the fertilizers’ cost,” said Aikhan Sultan, spokesperson for the Kazakh Ministry of Agriculture.
