Kazakhstan introduces subsidies for grain processors due to US tariffs

From August 1, the United States will impose duties of 25% on starch and gluten produced in Kazakhstan. Access of deep processing enterprises to the key market will be significantly limited. In this regard, the Ministry of Agriculture initiated changes to the Order on subsidizing the costs of processing enterprises for the purchase of agricultural products for deep processing. Now the purchase of wheat for the production of gluten will be subsidized.

As we were informed by the Ministry of Agriculture of the Republic of Kazakhstan, the Rules for subsidizing the costs of processing enterprises for the purchase of agricultural products for the production of deep processing products were approved back in 2014. This order is still in effect.

When asked whether the purchase of grain for deep processing is currently subsidized, the Ministry responded:

“Currently, wheat is not purchased for the production of gluten, due to the lack of standards for subsidizing wheat within the framework of the above-mentioned Subsidy Rules.

It should be noted that on March 14, 2025, within the framework of the IV National Kurultai, the Head of State set the Government the task of ensuring that Kazakhstan enters the top ten global producers and suppliers of deep grain processing products within 10 years.

At the same time, in the context of changing foreign economic conditions, deep grain processing enterprises face serious challenges. More than 60% of the volume of gluten produced was previously exported to the United States. At present, the United States has imposed duties of 25% on goods from Kazakhstan and limited access to a key market.

In order to increase the competitiveness of deep grain processing products, the Ministry of Agriculture has developed a draft regulatory legal act providing for subsidies for the purchase of wheat for the production of gluten.

The Ministry of Agriculture also noted that every year the demand for products with high added value is growing both in the domestic and world markets. Modern technologies make it possible to extract more than 200 types of products from grain. At the same time, added value can be obtained in the production of gluten, starch syrups, amino acids, biopolymers, which exceeds the cost of grain up to 10 times. “The development of high-tech production in Kazakhstan will increase the share of processed agricultural products, expand the range of export-oriented high-value added products, attract qualified personnel, create new jobs, and increase tax revenues. It can also become both a tool for attracting investment and a source of development of related industries and income in the near future,” the department concluded.

Tags: Kazakhstan, subsidies, wheat, flour