Kazakhstan government to pay $3 million for seeds

28 февраля 2013, 12:24
Photo courtesy of Flickr.com
Photo courtesy of Flickr.com
Kazakhstan Agriculture Minister Assylzhan Mamytbekov. Photo by Danial Okassov©
Kazakhstan Agriculture Minister Assylzhan Mamytbekov. Photo by Danial Okassov©
Kazakhstan government will provide 450 million tenge ($3 million) in subsidies for seeds, Tengrinews.kz reports citing Kazakhstan Agriculture Minister Assylzhan Mamytbekov as saying at the briefing in Kazakhstan President’s Central Communications Service.

“The issue of seeds supply is quite critical. I would like to take steps to resolve the issue in advance. There is a problem of prices raise. This year the price reaches 70 thousand tenge ($467) per one ton of elite seeds. Considering that, we are making changes to increase the seeds subsidies and the ceiling price is raised from 19.5 thousand tenge ($130) to 25 thousand tenge ($167). To make sure that this program's scope is not cut, the government is planning to allocate additional funds from its reserlves in the amount of 450 million tenge ($3 million),” Assylzhan Mamytbekov said.

According to the Minister, seeds deficiency is expected in the amount of 80 thousand tons this year in Kazakhstan.

“These are 12.2 thousand tons in Aktobe oblast, 7 thousand tons in West-Kazakhstan oblast and 60 thousand tons in Kostanay oblast. Out of them, 55.4 thousand tons will be covered from the reserves of the oblasts and the Food Corporation is ready to issue a loan for the remaining 24 thousand tons. Financing is the main issue, while seeds at available for sale at local farms,” Assylzhan Mamytbekov explained.

Besides, according to the Minister, the Kazakhstan Government will continue subsidizing fuel and other goods for agricultural producers. 18.9 billion tenge ($126 million) will be allocated as part of this this program this year.

“Financing of fertilizers will be also increased. Last year we allocated 5 billion tenge ($33 million), this year’s plan is to have 5.4 billion tenge ($36 million). Last year showed that it was not sufficient. The plan is to gradually increase subsidizing of fertilizers and bring it to 20-25 billion tenge ($133-167 million) in line with the Agrobusiness-2020 program,” he said.

As for subsiding herbicides, the money will be allocated not only for locally-made, but also for imported herbicides in 2013.

“This will be beneficial and helpful for southern manufacturers who have been buying the imported goods only. We suppose that there will be a good demand for subsidies and the plan is to increase them 19-fold as part of this program. In general, Agrobusiness-2020 program is intending to increase the subsidies for herbicides up to 28 billion tenge ($187 million) in average. These subsidies made only 1.1 billion tenge ($7.3 million) last year,” Mamytbekov said.

By Baubek Konyrov

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