The Ministry of Agriculture of Kazakhstan has developed a bill to increase subsidies for grain delivery when exporting to Afghanistan by half. The proposal is open for public discussion until June 6 of the current year on the Open Legislative Acts website.
It is planned to increase reimbursement of expenses for exporting grain to Afghanistan from 20,000 tenge to 30,000 tenge and simplify the detailing.
The main goal is to free up industrial capacities, get rid of excess grain stocks in the domestic market, and expand export routes by 2025.
According to official statistics provided by the information agency "APK-Inform," during the current 7 months of the season, Kazakhstan has already shipped 272.5 thousand tons of wheat to Afghanistan (+61% compared to the same period of the previous season).
As announced earlier, the Minister of Agriculture of Kazakhstan signed decree No. 67 on March 3 of this year, "On the Rules for Providing Subsidies to Reduce Transportation Costs Associated with Grain Transportation and the Rules for Financing Expenses of the National Company in the Agricultural Sector Associated with Grain Transportation." The main goal is to free up industrial capacities and remove excess grain stocks from the market. Subsidy rates range from 20,000 tenge/ton to 30,000 tenge/ton depending on the direction.
In the Association of Grain Processors of Kazakhstan, warnings were issued that due to the funding of transportation costs for grain exports, Kazakh flour producers risk losing their main market for their products – Afghanistan.
