Over the past five years, state support for the agricultural sector of Kazakhstan has almost doubled, reaching 456.4 billion tenge. This has led to an increase in the volume of gross agricultural output by 1.9 times during the same period, reaching 8.7 trillion tenge. Food production has doubled to 3.1 trillion tenge. Minister of Agriculture Aydarbek Saparov reported this at a meeting of the Agrarian Issues Committee in the Majilis.
Thanks to state support measures, there is a sustainable growth in investments in the agricultural sector. Over the past five years, this indicator has increased by 2.7 times, reaching 981 billion tenge in 2023. The export of agricultural products has grown by 1.7 times, reaching 5.4 billion dollars last year.
The Minister emphasized that significant work has been done in the department to improve subsidy mechanisms. For example, in March 2024, a mechanism of advance subsidy for domestic fertilizers in crop production was introduced. The subsidy rate under this mechanism was increased from 50% to 60%.
Additionally, two new mechanisms were added to the Rules of subsidizing interest rates on loans: separate subsidization for loan agreements of agricultural sector entities for sowing and harvesting works, as well as direct subsidization of financial institutions.
To address the issue of insufficient collateral for spring-field works for farmers, a mechanism was introduced to guarantee loans for 85% of the loan agreement amount, as well as portfolio guarantee for credit agreements for field works.
This year, a mechanism of direct subsidization of interest rates for financial institutions to finance agricultural sector entities at an interest rate of 5% per annum without the need for documents from borrowers to receive subsidies was also introduced.
The cost reduction will take place through an advance payment on the total amount of financing by the financial institution in the current year. At present, this mechanism is available for development institutions in the agricultural sector - AO "Agrarian Credit Corporation", AO "KazAgroFinance", AO "Development Bank". From 2026, it will be extended to all financial institutions in the country. This mechanism will simplify the subsidization process and make it easier for producers to obtain low-interest loans.
It is noted that the issue of increasing the efficiency of subsidization is under special control of the Parliament and the government of the Republic of Kazakhstan.
