Economy of agro-industrial complex: why is it hard for Kazakhstan to become an agro-powerhouse?

Nariman Sagadiyev, Head of ALTAY AGRO TRADING LLP, in a conversation with a journalist of the World of NAN portal, told how the innovations in customs duties on some goods, adopted in January of this year, affected the activities of farmers.

Last December, Astana hosted a presentation on trade, economic and investment cooperation between XUAR of China and Kazakhstan. At this venue, ALTAY AGRO TRADING signed a contract to supply sunflower seeds to the PRC for over $10 million. According to the entrepreneur, this contract was signed before the innovations, but they were not exempted from duty payment.

"According to the obligations, we loaded a container train with sunflower seeds and we were surprised to see a notice about the need to pay a duty of €100 per ton, that is, almost 100 million tenge only for one container train! Does it mean that we have to pay for growing sunflowers?" the businessman asks.

Incidentally, Kazakh farmers have long stated a number of pressing problems in the agro-sector, and with the introduction of the export duty, the business becomes extremely unprofitable.

"We no longer see the point of growing sunflower and in general, grains are now cheaper than the cost price. We have been in this business for decades, but there has never been such a sharp drop in price: Kazakh grain is rapidly becoming cheaper, as domestic wheat cannot compete with Russian wheat in terms of cost and is no longer in demand.

The current situation is further complicated by export restrictions. For example, Nariman Sagadiyev has had to reduce sunflower crops by 30% since last year alone, and unfortunately this trend will continue.

"The agricultural sector of Kazakhstan has a huge potential for development, but in our reality, the development of agriculture is possible only if there are effective measures of support from the state: it is very important for business to have stability and predictability. I hope that our wishes will be heard soon", - summarized the head of ALTAY AGRO TRADING.

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