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The more products - the more subsidies

26 December 2016
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Subsidies for domestic farmers will be reconsidered for the purpose of import substitution

The more agricultural producers will pass grown produce to domestic enterprises, the more they will be able to receive subsidies. The Ministry of Agriculture proposes to extend this principle to cultivation of oilseeds and sugar beet. "It was decided that we will begin to subsidize per ton for processing, that is, if the oilseed is grown and exported, then the subsidies will not be paid. If the oil raw materials will presented to domestic plants, the agricultural producers will receive subsidies for every ton", - said the director of crop production and processing of the Department of production and processing of plants of the Ministry of Agriculture of RK Azhar Kadzhibekova at a briefing at the MA of RK.

In a similar manner the Ministry of Agriculture suggests to compensate the cost for locally grown sugar beet. "The manufacturer will also receive subsidies for the delivered products. The more the agricultural producers will hand over the product, the more you will receive subsidies", - said Anar Kadzhibekova.

The representative of the Ministry of Agriculture informed about upcoming innovations and subsidies in other areas. For example, next spring subsidies will be revised for the restoration of the seed industry. To this end, the state will cover the costs of cultivation of original and elite seeds. Changing the subsidy scheme for the use of fertilizers by farmers. Under current rules 50% is paid for the purchase of fertilizers, which are produced in Kazakhstan, and 30% for the purchase of imported fertilizers. "In order to agricultural producers interested in using high-quality and good fertilizer and pesticides, decided not to subsidize a percentage and in absolute terms," ​​- said Anar Kadzhibekova. For example, if the villagers will get a specific fertilizer containing nitrogen, then, even though it is imported or domestic, then the normative size of subsidies will be paid. In turn, the regulations are adopted by the order of the Minister of Agriculture. As for herbicides, then, as it was noted by the representative of the Ministry of Agriculture, the purchase or pesticides will be subsidized.

The size of the subsidies for agricultural machinery will be "absolute". Commenting on the innovation, Asel Kadzhibekova noted that the "pace of technology updates are very low," but "at the same time big money is spent to acquire it". The MA stated that they "buy mainly expensive imported equipment", although for the same money you can buy "cheaper equipment." "Therefore, it was also decided that the subsidies will be paid not as a percentage, bit on absolute terms. And the specification will be determined by the cost of the agricultural equipment that, so agricultural producers were keen to acquire the domestic agricultural machinery", - said Anar Kadzhibekova.

Speaking of one of the most popular subsidies in agribusiness - per hectare, Anar Kadzhibekova called it "ineffective" because "it did not stimulate agricultural producers to increase productivity". "Therefore, it was decided to revise and to send available funds to ensure that agricultural producers were interested in increasing marketable yield", - added the director of the Department of the Ministry of Agriculture.

At the same time hectare subsidy for the cultivation of fodder crops remains. It is a perennial forage crops the first year, for annual grasses, except for cereals and grains. Rice and cotton will also be grown at the expense of the hectare subsidies, since "these are the regional plants of social value".

MA will continue crediting of spring field works. "I think until February-March will be developed and made changes to subsidy rules. Accepting applications from agricultural producers to start in March - April", - summed Anar Kadzhibekova.

Zhannar Serdalina


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