Farmers have called loans of Prodkorporatsiya unprofitable

At the site of the Chamber of Entrepreneurs of Akmola region crediting through the JSC "NC Prodkorporatsiya" on forward purchase programs was discussed. Farmers of Akmola voiced their complaints during the meeting, reports World of NAN referring to "Atameken".

It is the fourth year the Forward Purchase Program has been operating within support of agricultural producers for spring field and harvesting works by the Prodkorporatsiya. This is the issuance of loans under the guarantees of banks or agricultural cooperatives. Last year in Akmola region Prodkorporatsiya financed 117 agricultural producers for a total amount of 19,5 billion tenge, with the delivery of 293 thousand tons of grain in autumn. Today the return of 242 thousand tons (29.5 billion tenge) or 83% of the plan (95.46% including return on the amount of funding).

Meanwhile, Akmola agrarians have a number of questions to Prodkorporatsiya. In particular, the director of Kenesary Bidai LLP Kuanyshbek Ibrayev believes that the lending mechanism offered today is difficult to access.

"The interest rate on the loan is 18% per year, together with this Social-Entrepreneurial Corporation (SEC) "Kokshe" adds its 6%, plus the collateral is required, in total the final interest on the loan for the borrower turns out to be 25%. Is this an affordable loan? I think that with such conditions this measure of state support has become on the contrary extremely inaccessible. In this regard, we ask the management of the Prodkorporatsiya together with the SEC "Kokshe" to review the terms of financing and approve favorable conditions for borrowers", - suggested the agrarian.

Director of "Sandyktau" LLP Zhamul Muskhanov joined the discussion, stating that agricultural producers of the region face discrepancy of established purchase prices in comparison with the costs of 1 ha of arable crops.

"Given how the prices of agricultural equipment and spare parts have changed, as well as the level of inflation, the price offered now by the JSC "NC Prodkorporatsiya" is irrelevant, because the yields are different, depending on the region. If in Sandyktau region, for example, we harvested 25-30 c/ha, in Astrakhan - 7-10 c/ha. We propose to increase the volume of procurement, as well as to revise the terms of sunflower delivery from November 15 to December 15, as this type of culture is harvested in the cold", - said Zhamul Muskhanov.

Director of Akmola regional representation of JSC "NC Prodkorporatsiya" Nurzhan Mazhitov while informing the participants of the meeting about the terms of forward purchase this year, said that there were several options. One of them, when agricultural producers as a commission for the use of money will supply additional volume of agricultural products within the commission amount. This option would work if additional funds were raised from second-tier banks.

"In the other case, the terms of the forward financing would remain the same and would not provide for any commissions and interest for the agricultural producers. This option will be accepted in the case of allocation of funds from the state budget. Farms are divided into four groups according to prepayment amounts and criteria. Three groups can receive money under the guarantee of SEC, and one group can receive money under the guarantee of second-tier banks. Each group has its own requirements and conditions", - said Nurzhan Mazhitov.

According to the speaker, an additional tool in the form of commodity credit is offered. It will apply for large farms under the guarantee of SEC or second-tier banks and the return of the goods in the autumn period, taking into account the commission.

At the end of the meeting members of the Committee on Agribusiness and Food Industry recommended Akmola representative office of the Prodkorporatsiya to take the voiced questions and suggestions of members to work, and then inform the Regional Chamber of Entrepreneurs about the measures taken.

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