APK NEWS: Subsidies will be distributed in a new way in Kazakhstan

Country: Kazakhstan
APK NEWS: Subsidies will be distributed in a new way in Kazakhstan
21 February 2024

The government of Kazakhstan has decided to change its approach to issuing subsidies in agriculture, shifting towards tying state support to increased production. This decision was announced at a meeting in Kostanay by the Vice Minister of Agriculture, although the specifics of implementation are yet to be fully detailed by the Ministry of Agriculture.

The new approach aims to hold subsidy recipients accountable for demonstrating efficiency and achieving growth in production volumes. This directive comes from the Prime Minister's office, indicating a broader governmental strategy to link subsidies to tangible results.

Local authorities, such as Akim Kumar Aksakalov of the Kostanay region, have criticized the current use of subsidies, arguing that they are often misallocated and fail to generate expected outcomes. Aksakalov highlighted concerns about the misuse of funds, citing instances where farmers spend subsidies on personal luxuries instead of investing in agricultural development, exacerbating rural neglect.

The Department of Agriculture of the Kostanay region presented data showing a significant increase in subsidy amounts over recent years, but without proportional growth in agricultural production. Monoculture, particularly wheat farming, remains dominant, indicating a lack of diversification and modernization in agricultural practices.

The call for a more targeted and results-oriented subsidy system was echoed by regional authorities, emphasizing the need for subsidies to incentivize productivity rather than being distributed indiscriminately. Azat Sultanov, the Deputy Minister of Agriculture, acknowledged the annual increase in subsidy amounts but emphasized that stricter requirements for farmers would be implemented in the coming years.

Despite the intention to reform subsidy distribution, concerns were raised by agricultural producers in the Kostanay region regarding delays in subsidy payments. Issues such as delayed payments from previous years and interruptions due to administrative transitions have contributed to financial strains on farmers.

Overall, the shift towards performance-based subsidies reflects a broader effort by the government to promote efficiency and productivity in the agricultural sector, although challenges remain in ensuring effective implementation and timely disbursement of funds to support farmers' livelihoods and agricultural development.

Please find the original version of the article below:
Subsidies will be distributed in a new way - APK News (apk-news.kz)

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