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Askar Myrzakhmetov pays a working visit to North Kazakhstan region

by May 24, 2017 General

The Deputy Prime Minister held a meeting on the issues of domestic agricultural machinery development. The meeting was attended by directors of local factories, representatives of agricultural machinery companies, as well as agricultural producers.

One of the tasks of the new AIC Development State program is the supply of agricultural producers with modern technique and equipment, as well as the development of agricultural machinery in the Republic.

To implement these tasks, a working group was created, which included representatives of the state and quasi-public sector, representatives of enterprises which produce agricultural technique and equipment. Based on the results of the working group meetings, as well as the analysis of the reasons delaying the renewal of the machine and tractor fleet and reasons for low levels of production, the Ministry of Agriculture developed the Agricultural Machinery Development Roadmap.

The activities indicated in the Roadmap will allow raising the level of production of existing capacities, opening up new types of production, increasing the range of products, and ultimately enabling farmers to provide qualitative and inexpensive domestic production equipment that are not inferior in their characteristics to world analogues.

It should be noted that from this year the approaches to subsidizing machinery and equipment oriented to domestic production have been changed.

If earlier one combine harvester of foreign production cost more than 30 million tenge of compensation, now 3 combine harvesters will be subsidized for these funds.

At the same time, foreign equipment will also be subsidized, but due to its high cost, reimbursement will be at the level of 5-7%, while the subsidy for the acquisition of domestic equipment will be at 25%.

“Approaches to providing KazAgroFinance JSC with leasing techniques have been revised, primarily by reorienting to domestic producer. These measures already allow increasing the volume of purchased equipment by 50-70%, which will subsequently increase the renewal rate by 1.5-2 times, � the Deputy Prime Minister noted.

The meeting discussed the implementation of the Roadmap, discussed the prospects for developing agricultural machinery production, in particular taking into account the capacity of the production facilities of North Kazakhstan region, and the opportunities for cooperation between enterprises from different regions on producing agricultural machinery, equipment, spare parts and components.

In addition, the regional Akimat hosted a group conference with representatives of 3 regions on conducting spring field work.

In the current year, effective diversification of crop areas began within the framework of the State Program.

To this end, memoranda between the Ministry and the Akimats have been developed and signed, which provide the expansion of the areas of oilseeds and fodder crops, cereals and grain crops, and sugar beet for a total area of about 900 thousand hectares already this year.

During the meeting, A. Myrzakhmetov emphasized that it is important to increase the efficiency of each hectare of arable land to produce high-yield crops that have the export potential.

In general, while familiarizing with preparations for spring sowing, the Minister focused on the fact that for the first time, the final rate for loans for spring field work was reduced to 6% per annum for final borrowers, while last year it was 9%. This is achieved by reducing the number of links in the chain of credit. In addition, as a whole, the required package of documents has been reduced for credit products.

The subsidies for original and elite seeds have been renewed this year. It should be said that the amount of budget funds allocated to support seed production this year exceeds the level of last year by more than 3 times. The minimum standards have been abolished, this will allow to interest farmers in receiving subsidies, since under the old scheme only a small amount of seeds was subsidized.

The mechanism of subsidizing fertilizers has been changed. If earlier the subsidy rate was set in percentage terms, this year they are provided in absolute figures. This allowed farmers to choose fertilizers for quality and price regardless of the country of origin and expand the range of used fertilizers. This year, there are 156 types of subsidized fertilizers, in 2016 there were 85. Today 200 thousand tonnes have already been purchased.

Currently, in the main grain-bearing regions of the northern region (Akmola, Kostanay, North Kazakhstan), the sowing of agricultural crops is in full swing. As of May 23 this year, in these regions spring cereal crops were sown on an area of about 5.0 million hectares, which is 44% of the plan. Oilseeds are sown on 771 thousand hectares (60.4%), vegetable crops – on 8.9 thousand hectares (73.3%), potatoes are planted on 48.8 thousand hectares (88.1%). In the North Kazakhstan region, sugar beet is sown on an area of 400 hectares or 35% of the plan.

The rates of sowing are mostly good – the sown areas of grain crops exceed the level of last year by 124 thousand hectares or 2.6%, oil crops – by 222 thousand hectares (40.5%), potatoes – 1 thousand hectares (2%), vegetables – 0.5 thousand hectares (6%).

The Deputy Prime Minister also paid attention to problematic agroholdings. Currently, on the instructions of the Head of State, a working group has been created, which includes representatives of the Ministry of Agriculture, Akimats of Akmola, Kostanay and North Kazakhstan regions, NCE Atameken, Association of Financiers of Kazakhstan, JSC NMH KazAgro, and second-tier banks.

Boards of creditors were created for every problematic agroholdings, which take collegial measures of recovery for each enterprise that is part of agroholdings.

It should be recalled that business entities of North Kazakhstan region were also visited as part of the working trip.

Source: The Prime Minister of Kazakhstan