Kazakhstan's Ministry of Agriculture commented on the fuel market turmoil in Russia and assessed risks for Kazakh farmers. This was reported by Qazaqyia.kz citing Kursiv Media.
According to Vice Minister Azat Sultanov, the ministry annually allocates guaranteed volumes of diesel fuel to protect domestic producers. For spring field work, 402,000 tons of diesel have already been sent to farmers. Another approximately 400,000 tons (annual volume) is allocated for the harvest campaign. Sultanov emphasized that each region is assigned its own oil refinery, and the delivery schedule is strictly observed.
"There are currently no concerns for farmers that work will not be carried out on time... We have been using this benefit for many years, and despite any geopolitical situations, there has never been a case where we were not provided for," the vice minister assured.
At the same time, the Ministry acknowledged that the guaranteed volume does not cover 100% of farmers' needs. Additional fuel is purchased on the market at market prices for ancillary needs — for example, transporting harvested crops to elevators or operating grain dryers. However, key agrotechnical measures are fully provided with subsidized fuel (during the sowing campaign, the price was 15% below market).
Journalists raised the question of how the fuel situation would affect the final cost of food products, since feed accounts for a huge share in meat and milk production, and fuel costs are embedded in its cost.
Sultanov clarified that the fuel allocated by the state is not direct subsidies, but support in the form of guaranteed provision of subsidized fuel. It can also be used for fodder harvesting on natural pastures and hayfields.
"We do not forecast a sharp jump, say, due to the current situation, at least. But indeed, you correctly note that feed production accounts for a significant share. And I will also note that in the production of processed products there are costs for fuel and, say, the cost of bread depends only 51% on the cost of grain. And there are other derivatives, including logistics, where fuel is used," the speaker explained.
The Ministry concluded that thanks to close cooperation with the Ministry of Energy, Kazakhstan's agro-industrial complex is protected from shortages, and the domestic food market does not expect shocks due to the external fuel turmoil.