The Ministry of Agriculture of Kazakhstan held a meeting of the interdepartmental working group on the phased transition from commodity-specific subsidies to concessional lending for entities of the agro-industrial complex (AIC) by 2029. The meeting was attended by deputies of the Mazhilis, representatives of state bodies, financial institutions, industry associations, and businesses. Vice Minister of Agriculture Azat Sultanov reported that last year, subsidies for breeding and selection work, as well as interest rate subsidies on loans for working capital, were abolished. Simultaneously, the volume of concessional lending to the AIC was increased.
Alternative financial instruments were introduced: access to concessional loans and leasing at 5% per annum for spring field work and harvesting, processing enterprises, and livestock farming. In 2025, the total volume of concessional lending for the first time reached approximately 1 trillion tenge. This practice will continue in the current year. The meeting reviewed current state support measures for the AIC, the results of an analysis of subsidy effectiveness (conducted jointly with the FAO), as well as international experience in classifying commodity-specific subsidies.
Participants discussed the assessment of the transition to concessional lending and put forward proposals for improving the support system. The need for a comprehensive approach was noted, taking into account the sustainability of the industry, investment activity, development of processing, and ensuring the domestic market. The proposals will be elaborated within the working group with the participation of businesses and industry associations.