24 Apr 2024 16:13

Kazakhstan commits 16 trillion tenge to agricultural sector growth

ASTANA. April 24 (Interfax) - Kazakhstan has launched a national initiative called the "Strong Agro-Industrial Complex" aimed at doubling the gross agricultural output from 2024 to 2028.

The draft plan is available for public feedback until May 10 on the "Open Legal Regulations" website.

The project outlines an allocation of around 16 trillion tenge for the agro-industrial complex's development during 2024-2028. This funding includes 9.433 trillion tenge from the national budget, 2.464 trillion tenge from local budgets, and 3.825 trillion tenge from extra-budgetary sources. Approximately 67% of this financing or 10.460 trillion tenge, will be in the form of repayable funds.

The initiative aims to double the gross agricultural output to 17 trillion tenge by 2028 and increase agricultural product exports to $10 billion. Additionally, it seeks to attract 250% more investment in agriculture, reaching 3.2 trillion tenge, and raise the share of processed agricultural products to 70%.

To achieve these objectives, the plan proposes various measures such as diversifying crop cultivation towards more profitable crops, upgrading agricultural machinery, and implementing water-saving technologies across at least 150,000 hectares annually, among others.

"The steps include: offering preferential lending at a maximum annual interest rate of 5% for spring fieldwork and harvesting expenses; covering costs such as seeds, fertilizers, pesticides, fuels, and lubricants; financing forward purchases of agricultural products totaling at least 1.5 trillion tenge annually; preferential leasing of agricultural machinery amounting to at least 450 billion tenge annually, at a maximum interest rate of 5% per annum," the document reads.

The document outlines plans to modernize agricultural research infrastructure, universities, and experimental production facilities to enhance technological adoption and workforce competence in the agro-industrial complex.