Kazakhstan Introduces Subsidies for Wheat Exports: Program Details

The Ministry of Agriculture of Kazakhstan has approved new rules for subsidizing transportation costs for grain exports. According to the ministry's order dated March 3, government support aims to reduce producers' expenses, thereby increasing wheat export volumes from January 1 to September 1, 2025.
As the Ministry of Agriculture explained, the key goal of the subsidies is to free up elevator capacities and reduce excess grain stocks in the domestic market. This measure will help stabilize the agricultural sector and prevent issues related to stockpiling.
The government has allocated 40 billion tenge, which will allow for the subsidization of 2 million tons of wheat exports. The amount of subsidies will depend on the export route and will be 20,000 or 30,000 tenge per ton.

How Will Subsidies Be Distributed?
Financial support will be provided to exporters shipping grain via the following routes:
• Transit through Russia to the ports of the Azov, Black, and Baltic Seas — 20,000 tenge per ton;
• Through Russia, Latvia, Lithuania, and Estonia to Baltic Sea ports — 30,000 tenge per ton;
• Through Russia to Latvia, Lithuania, and Estonia — 20,000 tenge per ton;
• Through Azerbaijan and Georgia to Black Sea ports — 30,000 tenge per ton;
• Through Turkmenistan to Afghanistan — 20,000 tenge per ton;
• Through Turkmenistan to Iran — 20,000 tenge per ton;
• Through China to Southeast Asian countries — 30,000 tenge per ton;
• To Azerbaijan, Georgia, and Armenia — 20,000 tenge per ton.
In addition to supporting private exporters, subsidies will also cover transportation costs for the national agricultural company. Specifically, the Food Corporation will receive 20,000 tenge per ton for wheat exports to Tajikistan, Turkmenistan, Uzbekistan, and China.

What Does This Mean for the Market?
The government subsidy program could become a key factor in increasing Kazakhstan’s grain exports. Financial support reduces the burden on farmers, makes exports more profitable, and opens new opportunities for suppliers.
Experts note that beyond economic benefits, the initiative will help balance the market, preventing overstocked warehouses and a possible drop in domestic prices.
How the payments will be implemented and how quickly companies can receive compensation for transportation costs remains a crucial issue that the agricultural community will closely monitor in the coming months.

🔑 Key Takeaways:
🔹 40 billion tenge will be allocated to subsidize the export of 2 million tons of wheat in 2025.
🔹 The state will compensate 20,000–30,000 tenge per ton depending on the export route.
🔹 The program will help free up elevators and stabilize the grain market.