BAKU, Azerbaijan, May 20
By Nargiz Sadikhova - Trend:
Kazakhstan’s Ministry of Agriculture has approved the rules for the forward purchase of agricultural products for 2020, Trend reports with reference to the ministry.
The ministry said that purchase of 365,000 tons of agricultural products, namely wheat, barley, oilseeds and buckwheat will be funded within the forward purchase process.
Earlier this month, Kazakhstan’s Minister of Agriculture Saparkhan Omarov said that mechanism of forward purchases was introduced by an order of Kazakhstan’s president. A total of 24.5 billion tenge ($58.7 million) was allocated from the budget for these purposes.
The main purpose of the purchase is to provide local market with raw materials for production of certain types of socially significant food products.
As reported earlier this month, sowing area of highly profitable crops such as oilseeds, vegetables and fodder crops has been increased by 238,000 ha this year in Kazakhstan.
The overall sowing area of agriculture crops was increased to be 22.5 million ha in Kazakhstan in 2020.
The regional budgets allocated 11.3 billion tenge (425.9 million) to subsidize seed production development this year, whereas 2.5 billion tenge ($5.7 million) were allocated from the republican budget to purchase nearly 29,400 tons of seeds and 838,700 elite seedlings.
---
Follow the author on twitter: @nargiz_sadikh