Forward financing to support the development of pulse crops

Since 2025, the Food Contract Corporation has been accepting applications for long-term forward financing of red lentil production. The pilot project is being implemented jointly with the United Nations Development Programme (UNDP) as part of an initiative to promote sustainable agricultural systems and preserve ecosystems in Northern Kazakhstan.

The initiative targets agricultural producers in the North Kazakhstan, Akmola, and Kostanay regions. The selection of participants is currently underway. Key requirements include соблюдение crop rotation, availability of necessary agricultural machinery, and a qualified agronomist, as participation requires the adoption of environmentally friendly agricultural technologies and adherence to scientific recommendations.

The financial mechanism provides advance funding for sowing operations at a rate of 90,000 tenge per ton of red lentils. This instrument is aimed not only at expanding the acreage of in-demand crops but also at enhancing the stability of agribusiness.

According to UNDP experts, northern regions of Kazakhstan still show a high dependence on wheat monoculture, with its share reaching 75–87% of total sown areas. At the same time, there is significant potential for expanding pulse crop cultivation, particularly in the North Kazakhstan region.

As noted by Samat Tenbayev, Deputy Chairman of the Board of the Food Contract Corporation, farmers are showing growing interest in more profitable crops, including pulses and oilseeds, which is already reflected in sector dynamics.

Over the past five years, the area under pulse crops has increased more than fourfold to 781,000 hectares. In 2025, Kazakhstan harvested a record pulse crop of nearly 1 million tons, with lentils accounting for about 78% of the total.

The increase in production has expanded export opportunities: according to the Bureau of National Statistics, exports of dried pulses exceeded 570,000 tons, growing by almost one and a half times compared to the previous year.

Strong external demand and more attractive pricing compared to wheat make lentils one of the most promising crops for farmers.

The Food Contract Corporation emphasizes that the key objective of the agro-industrial complex is not only to increase production volumes but also to ensure the sustainability of the sector. Supporting crop diversification and implementing modern agricultural technologies help increase profitability and reduce dependence on market and other risks.

Through long-term forward financing, farmers gain access to working capital and guaranteed sales markets. At the same time, within the UNDP project, farms, with the support of national and international experts, are working to restore soil fertility while adhering to necessary agronomic practices.

According to Sukhrab Khodzhimatov, Acting UNDP Resident Representative in Kazakhstan, this mechanism is a practical example of how financial tools can drive the transition to more sustainable and diversified agricultural systems while increasing farmers’ incomes and reducing sectoral risks.