Kazakhstan to Provide $316 Million for Grain Production


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The total sown area in the current year in Kazakhstan will amount to 23.4 million hectares, which is 68.6 thousand hectares more than in 2022. It is planned to increase the crops of Grain and leguminous crops by 117 thousand hectares, fodder crops — by 36.5 thousand hectares, and sunflower — by 30.8 thousand hectares. Prime Minister Alikhan Smailov said at a Government meeting that 140 billion tenge (USD316 million) would be allocated for preferential financing of sowing and harvesting operations in Kazakhstan this year. It also provides 20 billion tenge for forward purchase and 87 billion tenge through subsidies.

“The state support provided requires the fulfillment of certain conditions on the part of farmers. This is strict compliance with agricultural technologies, timely application of fertilizers, and plant protection products. I would like to emphasize that the volume of fertilizer application is only 26% of the scientific need. Even our neighbors have much higher indicators. At the same time, 12 fertilizer plants operate in Kazakhstan, and the state subsidizes farmers to purchase such products. Therefore, it is necessary to focus all these productions on the domestic market first,” the Head of Government said.

According to him, due to insufficient application of mineral fertilizers to the fields, farmers of the Republic of Kazakhstan annually lack about 10 million tons of high-quality Wheat, almost half of the harvest. In addition, there are losses from soil degradation, weed infestation of fields. According to the Minister of Agriculture Yerbol Karashukeyev, last year, for the first time in the previous ten years, fertilization reached 667 thousand tons or 26% of the demand. About 704 thousand tons of fertilizers are planned for this year; 63% are domestic: ammonium nitrate and amorphous.

“As of late February, 55 thousand tons of fertilizers have been shipped to farmers for spring fieldwork, including 27 thousand tons to the southern regions. 31.3 billion tenge is provided for subsidizing fertilizers in local budgets. According to the Minister of Energy Bolat Akchulakov, 413 thousand tons of diesel fuel are allocated for spring field work at a reduced cost – 15-20% lower than the market price. 

Wheat Insurance in Kazakhstan

Agrarian Credit Corporation (ACC) announces the start of crop insurance against drought and rains. It is noted that the cost of the insurance contract is reduced by 80% due to state subsidies. In the current season, in addition to cereals – Wheat, Barley, oats, Corn; Oilseeds – sunflower, rapeseed, flax; the list of crops subject to insurance includes: buckwheat, millet, Grain sorghum, spring triticale, safflower, etc. 

ACC recalled that insurance contracts against soil moisture deficiency must be concluded according to Grain – until April 1 and oilseed – until April 15. The insurance protection period is set: according to the soil moisture deficiency index (2 phases) – from June 15 to September 15 and according to the soil moisture deficiency index (3 phases) – from May 15 to September 14, 2023.

Insurance contracts against excess moisture in the soil must be concluded before August 1, 2023. The insurance coverage period for this product is from August 15 to October 14, 2023. If a farmer has insured a thousand hectares, then at the conclusion of an insurance contract with a cost rate of 50,000 tenge per hectare, the insurance premium will be 1,750,000 tenge (1,000 hectares * 50,000 tenge * 3.5% insurance rate). Of this amount, 1,400,000 tenge is paid by the state in the form of subsidies (80% of the insurance premium). Upon the occurrence of an insured event, the farmer will receive an insurance payment in the amount of 16,500, 000 tenge (1000 ha * 50,000 tenge * 33%), which corresponds to the maximum amount of 33% of the insured value.

Other sources: GRAIN UNION

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