Kazakhstan Introduces Forward Food Financing

The Republic of Kazakhstan is introducing forward financing for the supply of socially important products reported by Kazinform.

“Starting in 2023, new approaches to forward financing for the supply of socially important products will be introduced in three stages. The first stage involves forward purchases of autumn and early vegetables, followed by the supply of the resulting vegetables to the market in the off-season. This is due to the fact that the highest price growth is observed for vegetables in late winter and spring,” said Yerbol Karashukeyev, Minister of Agriculture of the Republic of Kazakhstan.

According to him, financing of vegetable production will be provided for a year in advance for timely sowing, until August 1 of the financial year for the production of early harvest vegetables of the next year, and until September 1 for the production of autumn harvest vegetables of the next year.

“The second stage involves financing the working capital of processing companies for the purchase of raw materials. Today, the working capital of sugar factories is already being financed under a memorandum between the government, regions and sugar factories,” the Minister said.

The issue of forward financing for buckwheat, rice and sunflower producers through processing companies is also being worked out. Its introduction is planned for March 2023.

“The third stage is financing through the mechanisms of state support and sale of cheapened grain (pasta, bread, milk and dairy products, beef, poultry and eggs). It is planned to be implemented in June 2023,” the spokesperson added.

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