The government allegedly thinks about small and medium-sized farms

The government allegedly thinks about small and medium-sized farms

The government of Kazakhstan has explained the cancellation of subsidies for imported agricultural machinery, the analogues of which are "produced" within the country, World of NAN reports.

Under the earlier mechanism, the difference in the amount of subsidies for imported and domestic machinery was in favour of foreign manufacturers. Thus, 28.3bln (40.4%) of the total reimbursement of 70.2bln was allocated to support local enterprises, while 41.9bln (59.6%) was allocated to imported ones.

This approach reduced the sales of products of Kazakhstani factories. Under the new mechanism, the share of subsidies to foreign producers will be reduced six times to 6.5bln (9.3%), while the share of domestic producers is planned to reach 63.7bln (90.7%).

"In general, Kazakhstan's agricultural machinery enterprises currently cover about 80% of the self-propelled machinery market. At the same time in the country about 90% of agrarians are small and medium-sized farmers, for whom favourable leasing instruments and affordable equipment will open the possibility of renewal of machine and tractor fleet", - outlined the position in the government.

Apparently, the government misses the surprising facts of the market. If they artificially increase the demand for the so-called "domestically produced" machinery, the price will rise according to all the laws of the market. And it will become even more unaffordable for the small and medium-sized farmer. If our white-collar workers really thought about agrarians, they would remove all barriers to imports (utilisation, customs duty, etc.). The market would be flooded with cheap agricultural machinery from China and then "domestically produced" machinery would definitely become more affordable for farmers.

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