The real tool for solving these problems is the annual program of subsidizing transportation costs for wheat exports to distant markets. According to experts of the Grain Union of Kazakhstan, its application in 2025 allowed farmers to earn an additional 150-160 billion tenge due to an increase in the cost of grain. At the same time, the actual amount of state support paid at the moment amounted to 9.1 billion tenge against the planned 40 billion tenge, which clearly confirms the high effectiveness of this measure.
The additional income provided farmers with the opportunity to fulfill their social and production obligations in a timely manner: to pay wages, upgrade their equipment fleet, and purchase seeds, fertilizers, and plant protection products. Thus, the launch of the program was a timely and strategically verified measure that ensured not only the support of agricultural producers, but also the strengthening of the financial stability of the entire agricultural sector.
Why do we need a subsidy program?
Today, more than 70% of Kazakhstan's grain is exported to Central Asian countries and Afghanistan. Despite stable demand, these markets are characterized by low purchasing power. This concentration of supplies has led to a monopsony effect, where a limited number of buyers dictate terms and prices. This makes the agricultural sector vulnerable and reduces the profitability of farmers.
At the same time, Kazakhstan has not yet taken a stable position in the most profitable markets — Europe, China and Arab countries, where high-quality wheat is especially valued, such as that produced in our country. Kazakhstan grows strong wheat varieties with high protein content and excellent gluten properties, which are in demand in the bakery and pasta industries.
The key task of the country is to increase the recognition of Kazakh wheat — to increase exports to profitable markets. However, significant transportation costs remain the main barrier: the high cost of long-distance shipping makes exports economically unprofitable without government support. As a result, many farms are switching to more marginal crops — oilseeds and legumes.
The solution may be a multi-year subsidy program designed for the period of entering new markets. It will help to build the reputation of Kazakh wheat, increase brand awareness and adapt the domestic business to the requirements of foreign importers. With the strengthening of positions in profitable markets, demand is expected to increase and prices for Kazakhstani wheat are expected to rise. In the future, this will create conditions for a gradual reduction in government support.
According to the Bureau of National Statistics, in 2025, despite the overall increase in acreage by 750 thousand hectares, the area under grain crops decreased by 796 thousand hectares (minus 5% compared to last year). Including wheat — by 792 thousand hectares (minus 6%). At the same time, the area under oilseeds increased by 1,255 million hectares (46%), including flax — by 477 thousand hectares (55%). These indicators indicate that farmers are increasingly opting for more profitable crops.
In addition, in 2025, a significant expansion of acreage for legumes is recorded at the global level. Crop yields are forecast to increase in Canada and Australia. The Russian Federation, which has direct access to world trade routes through the ports of the Black, Azov and Baltic Seas, has an important competitive advantage in the export of agricultural products. In 2025, the country sowed about 4 million hectares of lentils and about 2 million hectares of peas, which further strengthens its position in the global legume market.
The increased interest of the countries of Southeast Asia and the Persian Gulf in the import of oilseeds and legumes has provoked increased competition, which has already led to lower prices for lentils, in particular in Turkey, which is actively working in this segment.
Further expansion of the production of oilseeds and legumes in Kazakhstan may lead to a decrease in soil fertility, an increase in the cost of the sowing campaign and, as a result, to an increase in the cost of final products. In the long term, this is fraught with the formation of similar problems that wheat production is facing today: falling profitability against the background of declining world prices, limited export and domestic consumption opportunities, as well as high dependence on the conjuncture of foreign markets. In the context of increasing competition and the continued technical unavailability of a significant part of Kazakhstani elevators for the acceptance and storage of oilseeds, the risk of a decrease in the profitability of domestic producers and the loss of part of the export potential is increasing.
That is why, in order to maintain a balanced structure of agricultural production and maintain stable wheat production in Kazakhstan, an annual program of subsidizing transportation costs is necessary. Without it, there is a risk of a gradual reduction in the acreage under wheat, the loss of traditional markets and soil degradation. The annual subsidy will make grain exports to distant markets profitable and consolidate Kazakhstan's strategic role as one of the world's leading wheat suppliers.
Success of the subsidy in 2025.
The grain transportation subsidy program in 2025 has shown impressive results:
- exports to subsidized markets increased by 78% in the first quarter compared to the same period last year.;
- price of Kazakhstani wheat in traditional markets increased by $30-50 per ton due to the diversification of destinations;
- access to alternative routes through the ports of Aktau and Kuryk, including the markets of Europe and the Caucasus, has begun.
In the 2024/25 marketing year, exports of durum wheat increased significantly against the background of the transportation cost subsidy program. According to the Grain Union of Kazakhstan, Italy alone imported almost 400,000 tons of Kazakh durum wheat in 10 months of the season. Deliveries were also carried out to Latvia, Belgium and Portugal, which indicates the expansion of the export geography and the strengthening of Kazakhstan's presence in the durum wheat market in Europe.
What will the annual subsidy program do?
1. Diversification of sales markets.
The development of sustainable logistics routes to Europe, the Middle East, Southeast Asia (Vietnam, Thailand, Malaysia, Singapore) and China will strengthen Kazakhstan's export potential and trade stability.
2. Export revenue growth.
Entering highly profitable markets will allow farmers to sell grain at fair prices, which will increase their interest in increasing the volume and quality of products.
3. Increasing competitiveness.
Government support will give farmers an incentive to upgrade their seed base, introduce environmentally friendly technologies and develop agricultural technologies that meet international standards.
4. Reducing volatility and risks.
Diversification of export routes and access to new markets minimize price dependence on Central Asia and Afghanistan, which currently account for more than 70% of Kazakhstan's grain exports. The expansion of the supply geography will ensure the industry's resilience to price fluctuations and strengthen Kazakhstan's position in the global market.
5. Infrastructure and logistics development.
Systemic supplies will create a stable load on the transport infrastructure, including the ports of the Caspian Sea, and increase the efficiency of the railway network.
Why is this beneficial to the state?
The annual subsidization of transportation costs is not just support for farmers, but an investment with a powerful multiplier effect. It provides:
- growth of economic activity and the development of the entire agro - industrial complex;
- preservation and development of rural population through new jobs and increased incomes;
- attracting investments in agriculture and related industries;
- modernization of production and increase of its efficiency;
- development of regional infrastructure and improvement of quality of life;
- strengthening the international image of Kazakhstan as a reliable supplier of high-quality grain;
- tax revenue growth due to increased profitability of farmers and related industries.
