The Ministry of Agriculture has prepared an order introducing changes to the subsidy rules for reimbursing part of the expenses incurred by agricultural complex entities in investment projects. The order is aligned with the priorities of the updated Concept for the Development of the Agro-Industrial Complex for 2021-2030, approved by the government of Kazakhstan.
The aim of the project is to increase the accessibility of goods, works, and services within the implementation of investment projects in priority areas of the agro-industrial complex by reducing capital intensity and increasing the return on investment. According to the Ministry of Agriculture, this measure will help farmers improve their financial position by reducing debt from loans or leasing.
Furthermore, within the framework of ensuring coherence between agricultural support policies and the state's industrial policy, positions within Project Passport No. 1 "Acquisition of agricultural machinery and equipment" have been revised. Additionally, the production of bioethanol has been added to the project aimed at establishing enterprises for the deep processing of plant products.
The order also provides for the reimbursement of part of the costs for establishing gluten-free production. Subsidization of construction and installation works is carried out for investment projects that achieve performance indicators and/or productivity and/or sales volume of products and/or capacity utilization in accordance with the project's business plan.
Moreover, the list of agricultural machinery and equipment manufacturers, as well as affiliated enterprises that have concluded agreements on industrial assembly in Kazakhstan for at least two types of self-propelled agricultural machinery, is provided by the authorized body for industrial activity support no later than December 1 for the following year and no later than July 1 for the respective year.
In case an investor does not receive subsidies (due to not using an electronic invoice for receiving state support measures), the electronic invoices are unblocked within five working days upon the investor's request through the GIS system. The implementation of the order project will be carried out within the funds allocated for 2023-2025 (355,117,230 thousand tenge), including 115,117,230 thousand tenge in 2023, 120,000,000 thousand tenge in 2024, and 120,000,000 thousand tenge in 2025.
The document is available on the "Open NPA" website for public discussion until April 8. Previously, it was reported that fertilizer manufacturers would receive subsidies from the state in advance.
