Kazakhstan: reforming of the subsidy system to support agricultural producers – E.Gan

Source

APK-Inform

2119

Noncompliance of the existing structure of subsidy instruments to the recommendations and criteria of the World Trade Organization (WTO) and the Organisation for Economic Co-operation and Development (OECD), became one of the main reasons for development of the current reforming of the subsidy system of agricultural sector in Kazakhstan, declared the President of Grain Processors and Bakers Union of Kazakhstan, Evgeny Gan during his speech at the Caspian and Black Sea Agrarian Congress.

In addition, rather wide range of provided subsidies requires reform efforts, because mainly large-scale agricultural producers receive such type of subsidies. In addition, small-scale production capacities of agricultural companies, low productiveness in the industry, and underdevelopment of the institutional component of the subsidy system have its poor impact at the agricultural sector, the expert noted.

As for advantages of the reformed system, E.Gan called subsidizing of the costs of grain processing enterprises for purchasing of raw material agricultural products, as well as cheapening of fertilizers and pesticides for agricultural commodity producers - not only herbicides, but also fungicides and insecticides.

Also, the new system provides investment grants, interest rate subsidies on loans and leasing, and many other advantages, concluded the speaker.

You can become acquainted about the main events of the Caspian and Black Sea Agrarian Congress from the latest news at our website.

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