NCE "Atameken" suggest to subsidize primarily agricultural cooperatives

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The new rules on subsidies for reimbursement of the costs incurred by farmers during investments were discussed at the National Chamber

The head of the Secretariat of the relevant Committee Rustem Kurmanov spoke about this subject at the first session of the Committee of agro-industrial complex. He said that for the cost-effective use of budgetary funds, it was decided on January 1, 2016 to redirect funds of per hectare subsidies, and since 2017 from livestock industry to the financial instruments in the agro-industrial complex (including investment grants).

"Innovations in the rules is that there appeared a clause on agricultural production cooperatives. That is, if an agricultural cooperative will submit an application, then the relevant commission will take into account the total number of the breeding stock that are registered at the co-op as well as the total area of land. We immediately have a suggestion, we have already discussed it with the Minister of Agriculture. We believe that it is necessary to give a priority to agricultural cooperatives in terms of the order of receiving subsidies", - he said.

Another change, according to Kurmanov, is that now regulations provide for the payment of grants in tranches, with the exception of investment certificates as the purchase of vehicles for the transport of milk, farm animals, agricultural products.

"There appeared also the investment project as cultivation of fruit crops, including intensive type and grapes for 5 hectares. Previously, there were only apple orchards. Under the investment project increased the area for the creation and expansion of irrigation systems, irrigation and drip irrigation before it was 10 hectares, now it is 300 per investor ", - said the representative of the Secretariat.

The most important change in the rules, according to Kurmanov, is that in the priority group appeared a new direction "Expansion of production facilities for crops". "If earlier the agricultural producers, who were engaged in the production of cereals, oilseeds, did not receive investment subsidies when purchasing equipment, they can apply for reimbursement of their investments now ", - he explained.

Head of the Secretariat also said that the new rules change the maximum allowable cost for items such as the cost of tractors, harvesters, trailers, rolls, hay rakes, etc. within the frames of projects "Establishment and expansion of facilities for raising cattle for meat production capacity with more than 50 cows", "Creation and expansion of dairy farms from 50 to 400 cows", "Creation and expansion of facilities for growing sheep / goats with more 300 heads of breeding stock ","Creation and expansion of facilities for growing horses / camels with capacity of more than 100 heads of breeding stock".

Within the frames of the project "Dairy processing, milk processing facilities expansion of production capacity up to 10 tons per day" the capacity diminished. The maximum value of the machinery within the framework of such projects as "The acquisition of vehicles for the transport of agricultural products", "The acquisition of vehicles for the transport of farm animals", on the contrary, increased.

"I would like to draw attention to the fact that the cost limits most likely need to be revised because from the moment of introduction of the current rules, there occurred the repeated devaluation of tenge, which in turn affected the actual cost of construction or acquisition of equipment as part of the project. In this regard, we need to work thoroughly on the project, which was proposed by the Ministry of Agriculture in accordance with our comments and suggestions. We must discuss it and provide our comments and suggestions to the Ministry", - concluded Kurmanov.