18.04.2025, 10:48
Kazakh Farmers Request Extension of Loan Terms to Stabilize Pricing Policy
Farmers request two-year loans to avoid selling crops at undervalued prices and to better manage cash flow
The issue of revising loan terms for replenishing working capital became a central topic during a recent meeting between Kazakhstani farmers and Deputy Minister of Agriculture Azat Sultanov, held at the Kostanay Region Chamber of Entrepreneurs. Agribusiness representatives proposed extending the duration of such loans to two years and decoupling repayment schedules from rigid deadlines. According to them, this would help farmers avoid selling their products during periods of low market prices.
Participants cited recent examples: during the harvest season, sunflower seeds had to be sold at 160,000 tenge per ton, whereas current prices have already reached 200,000 tenge. A similar trend was observed in wheat sales — previously sold at 55,000 tenge per ton, now priced at 85,000. Stakeholders believe that more flexible loan conditions would allow for timely repayment without loss of income, and enable opening new credit lines when necessary.
Azat Sultanov expressed support for the initiative, noting that while longer-term financing would require additional budgetary resources, it would provide a sustainable reserve of working capital over the long term. He also highlighted that the current system of state subsidies and credit support for the agricultural sector is undergoing transformation. Going forward, applications for preferential financing will be accepted only when funds are available. According to Sultanov, this approach would make the system more transparent and predictable for farmers.
Another key issue discussed was the government's debt in subsidy payments. The Deputy Minister confirmed that repayment schedules have been approved, with priority given to obligations related to interest rate compensation. The funds are being disbursed from the current year's budget, starting with debts from 2023. Additional funding sources are expected to be reviewed shortly.
Key Takeaways:
• Farmers request two-year loans to avoid selling crops at undervalued prices and to better manage cash flow.
• The Ministry of Agriculture supports the idea but emphasizes the need for more funding and greater transparency.
• Subsidy debt repayments have begun, with priority given to 2023 interest compensation.