$6.5 billion to finance agriculture in 2012-2014

In 2012 Kazakhstan plans to boost budget spending on agriculture by 7% against 2011, that is to $2.3 billion, Finance Minister Bolat Zhamishev told at the government sitting of August 27 focused on draft three-year budget. A total of $6.5 billion is to be earmarked to finance agriculture in 2012-14: $2.3 billion in 2012, $2 billion in 2013 and $2.17 in 2014. In August Tengrinews.kz had reported, citing KazAgro National Company Vice Chairman of the Board Kairat Aituganov, that starting from 2012 Kazakhstan would stop subsidizing crops growing. “We believe subsidies to wheat growing are not effective. The state has decided to stop subsidies to crops growing”, he said on his working visit to Kostanai oblast. At the same time the Agriculture Ministry is considering a program of “cheap loans” secured against land. “$123.2 million is to be earmarked out of the state budget to finance the project”, according to Mr. Aituganov. A day before Mr. Aituganov's comments President Nazarbayev had publicly announced that “from year to year it has been more complicated to sell grain. (…) If a ton of meat is fivefold more expensive than a ton of grain (…) it is a viable initiative (…) Lands under grain should be transformed to accommodate forage crops”.