Flag of Kazakhstan

Minister of Agriculture Introduces Changes to Subsidy Rules for Crop Production Enhancement

in Economy / Kazakhstan - by


The Minister of Agriculture has made amendments to the Rules on subsidizing crop yield and quality improvement. The updated rules include new norms for obtaining subsidies through advance payments by fertilizer producers.

To be eligible for subsidies, a fertilizer producer must create a plan specifying monthly fertilizer sales volumes at reduced prices. This plan is submitted to the management by December 1 of the current year for the following year's subsidy allocation.

A financing plan is developed by the management based on the fertilizer sales plan. Within 10 working days of approving the financing plan, the management notifies the fertilizer producer of the budget amounts to be transferred to a special account. Subsidies are transferred to the special account, not exceeding 60% of the allocated funds for the respective month.

Agricultural producers submit electronic payment transfer requests for subsidies when purchasing fertilizers from domestic suppliers at discounted rates. The submission period is from February 1 to August 20 of the corresponding year for fertilizers acquired in the current year.

The calculation and disbursement of subsidies through payment transfer requests follow specific rules outlined in the regulations. Fertilizer producers are required to confirm expenses for purchased fertilizers through an electronic notification before funds are withdrawn from the special account.

Any remaining funds in the special account by September 20 of the corresponding year must be returned to the management's account by October 1. If the budget funds allocated to the special account are fully utilized, the acceptance of payment transfer requests ceases, and a new submission process is initiated.

For the year 2023, payment transfer requests for fertilizers can be made from February 1 to December 1, 2024. The Ministry informs about the application submission dates on its official website and in the State Integrated Information System (GISS) at least 14 days before the process begins.

Agricultural producers can retract payment transfer requests if the budget funds in the special account are depleted before the fertilizer sales information is updated in the request.

These regulations apply to fertilizer producers with a complete production cycle from raw material extraction to final product release, holding the necessary licenses for operation. The list of fertilizer producers is submitted to the Ministry and the Ministry of Industry and Infrastructure Development by November 1 of the current year for the following year's subsidy program.

The order comes into effect on March 13, 2024.