Prodkorporatsiya suspends acceptance of applications for transport subsidies

The limit of funds allocated for the transport cost subsidy program for Kazakh wheat exporters has been reached. Further payments will be made as new funding becomes available from the national budget, strictly in the order of submitted applications.

According to the press service of Prodkorporatsiya, to date, transportation of 320 thousand tons of wheat has been subsidized under the logistics cost reimbursement program. The total amount paid to agricultural producers amounted to 7.2 billion tenge.

Representatives of Prodkorporatsiya also noted that, according to customs statistics, wheat shipments along subsidized routes continue to operate steadily, despite the temporary suspension of payments.

This government initiative is aimed at supporting domestic grain producers and provides partial compensation for transportation costs along strategically important transit routes. Specifically, the subsidies cover costs for shipments to the ports of the Azov, Black, and Baltic Seas, as well as routes toward Latvia, Lithuania, and Estonia. In addition, government support is provided to suppliers exporting wheat via China in transit to Southeast Asian countries.

The amount of compensation ranges from 20,000 to 30,000 tenge per ton of product, depending on the final destination. The main goal of this measure is to expand the geography of exports and ensure access for Kazakh wheat to global markets, including promising directions in the Middle East, North Africa, and Asia.

It is worth noting that the government's 2025 plans included up to 40 billion tenge for transport subsidies. It was expected that this amount would stimulate the export of around 2 million tons of wheat to new, non-traditional markets for Kazakhstan.

The current situation reflects the high demand for the program among exporters and underscores the need for timely additional funding to further support the sector.