At the KAZAKH GRAIN & LOGISTIC FORUM, held in Almaty on February 4, Chairman of the Union of Grain Processors of Kazakhstan, Zhomart Motyshev, presented an in-depth analysis of the challenges constraining the growth of the milling industry. Despite the strong production base developed over decades, which enables grain processing to function as a full-fledged industrial sector, the industry today remains constrained by a number of systemic factors.Among the key issues highlighted were difficulties in railway logistics, delays in value-added tax (VAT) refunds, and the clear insufficiency of funding allocated to the transport cost reimbursement program. Under the current conditions and timelines, enterprises are unable to secure adequate working capital, while some business representatives have been waiting for legally mandated payments for years. At the same time, millers remain a critical link in the agricultural sector, purchasing more than one-third of the total wheat harvest at market prices and ensuring stable demand for farmers.
To address the current situation, several strategic measures were proposed. First and foremost, it is necessary to закрепить the priority of exporting products with high added value and to more actively utilize trade diplomacy tools to protect the interests of Kazakh flour exporters in Afghanistan and Central Asian countries. Zhomart Motyshev emphasized the importance of simplifying state support mechanisms, including ensuring prompt tax refunds, increasing the budget for transport subsidies, and fixing the rules for participation in the program for a minimum of three years. An initiative was also voiced to include milling products in export transportation subsidy programs administered by the Ministry of Agriculture, similar to the mechanism currently applied to wheat.
Special attention was also paid to infrastructure-related issues. These included the need for timely coordination of transportation plans and the elimination of practices involving restrictions or bans on product exports. The head of the Union of Grain Processors expressed the view that the industry requires a comprehensive state development strategy. According to him, the absence of systemic solutions to protect domestic processing could ultimately lead to Kazakhstan becoming merely a supplier of raw materials to neighboring countries, losing its positions in the market for finished products. In conclusion, it was noted that the government is already demonstrating an understanding of the situation, and the business community expects the announced support measures to be implemented in the near future.
Source: https://agrosearch.kz/en/news/sistemnye-barery-mesayut-realizacii-eksportnogo-potenciala-mukomolov
