Insufficient and technologically limited storage capacity is becoming one of the factors hindering the further development of crop production in Kazakhstan. With the diversification of crop acreage and the increase in oilseed and legume production, demands are increasing not only on storage capacity but also on the ability to separately receive, clean, dry, and store different crops.

In this regard, Kazakhstan has launched a new mechanism for concessional financing for the construction, expansion, and modernization of elevators and grain storage facilities.

From a Presidential Instruction to Practical Financing

The issue of modernizing elevator facilities was raised at the state level in September 2025. President of the Republic of Kazakhstan Kassym-Jomart Tokayev instructed the Government to launch a special program for concessional financing for elevator modernization.

In December 2025, the Ministry of Agriculture announced the development of a corresponding program and plans to launch it in the first half of 2026.

The mechanism has now moved into practical implementation. Starting April 13, 2026, the Ministry of Agriculture will accept applications from second-tier banks for direct subsidies of interest rates on investment projects, including elevators and grain storage facilities.

Key Financing Terms

The following key terms apply to investment projects for the development of storage infrastructure:

Loan rate: 6% per annum;
Loan term: up to 120 months (10 years);
Financing for the construction of new elevators, as well as the expansion and modernization of existing facilities;
Minimum elevator capacity: 10,000 tons of simultaneous storage;
Collateral is determined in accordance with the second-tier bank's collateral policy;
The project must ensure a return on investment within the financing term and have confirmed markets for its goods or services.
Thus, government support is focused not only on the creation of new capacity but also on the technological upgrade of existing infrastructure.

Modernization of existing elevators is particularly important.

This is crucial for the grain industry.

Diversification of crop production is gradually changing the requirements for storage infrastructure. Traditional elevators, primarily focused on wheat and barley, must adapt to the increased production of oilseeds and legumes.

This requires additional separate storage capacity, modern receiving and shipping lines, cleaning and drying systems, ventilation systems, temperature and humidity control, and automated product accounting. The relevant technical requirements are stipulated in the financing terms.

In many cases, modernizing an existing elevator can be more cost-effective than building a new facility. Existing enterprises already have access roads, utilities, laboratories, personnel, and other necessary infrastructure.

Position of the Grain Union of Kazakhstan

The Grain Union of Kazakhstan considers the launch of concessional financing for the construction and modernization of elevators a timely and necessary measure.

However, the effectiveness of the new mechanism will be determined not only by the 6% interest rate and loan term of up to 10 years, but above all by the actual availability of financing for enterprises in the industry.

One of the key issues remains the collateral requirements. According to the established conditions, collateral is determined in accordance with the policies of second-tier banks.

In practice, it is precisely the insufficient collateral that can limit access to investment resources for some medium-sized enterprises.

Therefore, according to the Grain Union of Kazakhstan, the further implementation of the program must ensure the actual availability of financing for existing grain processing enterprises, clear and transparent application review conditions, and the ability to comprehensively modernize enterprises.

Particular attention should be paid to projects that enable elevators to handle multiple types of products simultaneously—grains, oilseeds, and legumes.

It is equally important to monitor the actual number of submitted, approved, and funded projects to assess the true availability of the new mechanism for the industry.

Storage infrastructure must evolve alongside production.

Growth in production and further diversification of agriculture must be accompanied by corresponding development of storage and post-harvest processing infrastructure.

For Kazakhstan, this is important not only for crop safety. Modern elevator infrastructure allows for faster receipt and shipment of products, the formation of uniform export lots, the separate handling of different crops, and more efficient use of rail and road logistics.

The position of the Kazakhstan Grain Union is that the elevator modernization program should become a truly accessible investment tool for the industry. Its result should not simply be an increase in overall storage capacity, but rather a technological upgrade of the infrastructure in accordance with the changing structure of crop production and the requirements of domestic and export markets.