Kazakhstan Subsidizes Grain Exports: 236,000 Tons Already Requested

The government continues to intensify efforts aimed at reducing logistics costs and clearing storage facilities ahead of the new harvest. At a government meeting held on April 10, the Ministry of Agriculture announced that 101 applications had already been received from domestic grain exporters requesting transport cost subsidies. The total volume of grain covered by this initiative has reached 236.5 thousand tons.

Why it matters:
• Export growth: From September 2024 to March 2025, Kazakhstan’s foreign shipments of the new grain harvest increased by 55%, reaching 6.8 million tons.
• Market diversification: The bulk of exports traditionally go to Central Asian countries, China, and Afghanistan. However, Iran and Azerbaijan showed record dynamics, increasing purchases by 18 and 98 times, respectively.
• Financial cushion: Last week, the Cabinet of Ministers allocated 40 billion tenge to partially compensate logistics costs, aiming to strengthen the price competitiveness of Kazakh grain on global markets.

Subsidy Mechanism
Order No. 67, signed by the Minister of Agriculture on March 3, establishes the rules for reimbursing expenses related to the transportation of grain via rail and water transport. Depending on the supply route, the state support rate ranges from 20,000 to 30,000 tenge per ton. The goal of the program is to quickly free up elevators, reduce pressure from excessive inventories on domestic prices, and stimulate exporters to actively sell grain.

Expected Impact
According to industry analysts, the subsidies can:
• Lower logistics costs on key routes where freight rates are high
• Support foreign exchange revenue of agricultural enterprises amid volatile global prices
• Accelerate stock rotation, which is critical before the start of spring fieldwork and the subsequent 2025 harvest intake

Analysts positively assess the speed of state measures. They note that covering up to one-third of transport costs helps maintain competitive port prices, even amid rising freight tariffs.
It is worth noting that Kazakhstan harvested a record grain crop in 2024, which provided momentum for expanding export geography.

Key Takeaways:
• 101 applications from exporters covering 236.5 thousand tons of grain
• 40 billion tenge allocated for logistics, covering up to 30,000 tenge per ton
• Exports to Iran and Azerbaijan increased by 18 and 98 times, respectively