Due to U.S. Tariffs, Kazakhstan to Introduce Subsidies for Wheat Purchases for Deep Processing

Starting August 1, the United States will impose 25% tariffs on starch and gluten produced in Kazakhstan. This decision will significantly limit the access of Kazakhstani deep processing enterprises to one of their key export markets.

In response to the changing external economic conditions, the Ministry of Agriculture has initiated amendments to the Rules for Subsidizing the Costs of Purchasing Agricultural Products for Deep Processing, which have been in effect since 2014.

The proposed amendments include subsidies for the purchase of wheat intended for gluten production — a measure that was previously not covered by the existing subsidy program. According to the ministry, enterprises are facing serious challenges: over 60% of Kazakhstan’s gluten exports previously went to the U.S., and the imposed restrictions have severely undermined the competitiveness of this product.

The ministry’s initiative aligns with the goal set by the Head of State to position Kazakhstan among the world’s top producers and exporters of deep-processed grain products within the next ten years. It is expected that the expansion of state support measures will facilitate Kazakhstani products’ entry into new export markets and strengthen their standing among global suppliers.

The draft order is available for public discussion until July 25 of this year.