The Ministry of Agriculture of Kazakhstan announced the possibility of financial support for sunflower producers

Minister of Agriculture of Kazakhstan Yerbol Karashukeev proposed creating a working group to work out changes to the subsidy rules so that sunflower producers can receive the proper state support in accordance with the production cycle. This became known during an informal meeting on problematic issues of the agro-industrial complex, which was held by the Minister of Trade and Integration Serik Zhumangarin with a group of deputies of the Mazhilis of the Parliament.

According to the press service of the Ministry of Trade, the discussions were attended by the head of the Ministry of Agriculture, vice ministers of the national economy, industry and infrastructure development, heads of the Food Corporation, NMH Baiterek, Agrarian Credit Corporation, deputies of the Committees on Agrarian Issues, Legislation and Judicial and Legal Reform.

Deputy Aidarbek Khodjanazarov proposed a set of measures that, in his opinion, will help the agricultural sector solve the acute problem of financing on a residual basis.

     “The first tool that we are already discussing within the walls of the Parliament is the use of crop receipts and securities, which will allow the producer to sell the harvest that has not yet ripened. The second tool is guaranteeing loans from second-tier banks to the agro-industrial complex through the Agrarian Credit Corporation, which will allow attracting up to 4 trillion tenge to the sector. And the third tool, which has already proven its worth and is popular, is the expansion of forward financing. For example, to issue commodity loans on account of the future harvest not only with seeds, but also with pesticides, herbicides, fuels and lubricants,” the deputy put forward proposals.

He also raised the issue of purchasing raw materials and supporting sunflower seed producers.

     “Processing is important to us, and, of course, we don’t want to develop the processing industry of neighboring countries at the expense of Kazakhstan’s sunflower, but now there is a situation where seed producers do not receive the required subsidies, and processors buy cheap raw materials from Russia, and not from domestic farmers,” deputy said.

In turn, the head of the Ministry of Agriculture suggested creating a working group to work out changes to the subsidy rules so that sunflower producers can receive the proper state support in accordance with the production cycle. On all other issues, it was decided to organize a round table with the Food Corporation and determine how the state-owned company can become a full-fledged player in the market.

     “A food corporation should be a strong and active tool, and when necessary, a passive one, so as not to exert an excessive influence on the market. As for the sunflower export duty, each issue has two sides, and in the case of the duty, these are the interests of the producer and the processor. But there is also a state policy that is aimed at diversifying the market and increasing the production of processed products. And here we are going in the right direction. If we take the statistics, we see a significant increase in refining volumes. Export duty is a fair instrument. All offers from market participants will be considered. A balanced decision will be made,” summed up S. Zhumangarin.