State to Allocate KZT 10 Billion to Purchase Farmers' Grain

The Minister of Agriculture Aidarbek Saparov spoke about this at a Majilis meeting, Orda.kz reports.

According to Saparov, grain purchases from farmers will be organized through JSC NK Prodcorporation to prevent market issues. The Head of State previously instructed the Ministry of Agriculture to resolve this matter.

Today, they will announce the purchase prices from the government reserve. It is planned to allocate 10 billion tenge for these purposes, at the expense of which the first 155 thousand (tons - Ed. ) will be purchased. Tomorrow, probably, we will consider this topic at a government meeting,
 said Aidarbek Saparov.

The minister added that additional financing – 75 billion tenge – is required for a more significant purchase of about 1 million tons.

"Prodkorporatsiya" is already collecting grain to fulfill orders that they find. To date, five export contracts have been concluded for $20 million. Rules are also being prepared to subsidize grain transportation costs.

This type of subsidy will reduce the cost of transporting grain to the ports of the Black Sea, the Baltic Sea, to the territory of Southeast Asia, and so on. Thus, our grain will become competitive in the market of Europe and Africa, the Caucasus and other promising markets. We expect the adoption of the rules in the near future. Almost all ministries have agreed, a couple of ministries remain. I think we will resolve all these issues this week,the minister promised.

In 2024, farmers harvested a third more wheat than last year, which created a market price drop risk. 

Original Author: Zhadra Zhulmukhametova

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