The Ministry of Agriculture proposes extending subsidies for the rail transport of grain exports until September 1, 2027, according to the Association of Kazakhstani Freight Railway Carriers. The previous order, which was in effect until September 1, 2026, has expired. The Ministry of Agriculture proposes adopting new rules that retain the existing mechanism; if approved, these will remain in force until September 1, 2027, reports the APK Novosti agency.
"The previous rules, approved by a Ministry of Agriculture order dated March 3, 2025, expired on September 1, 2026. On October 6, the Republican Budget Commission decided to extend the mechanism until September 1, 2027. Since it is no longer possible to amend rules that have already expired, the Ministry of Agriculture proposes adopting new ones while maintaining the current mechanism. If adopted, the order will take effect following its initial official publication, apply retroactively to relations arising from September 1, 2026, and remain in force until September 1, 2027," the Association stated.
According to the decision of the Republican Budget Commission, the initiative will require 40 billion tenge from the national budget for 2026 to reimburse transport costs for up to 2 million tons of grain. Specific funding volumes and sources will be determined based on budgetary capacity. Subsidies will be granted to exporters and the "Food Contract Corporation" National Company JSC. The explanatory memorandum defines the objective as ensuring competitive pricing for Kazakhstani grain and facilitating the timely clearing of grain storage capacity in key grain-producing regions. The draft project provides for the subsidizing of grain shipments (classified under HS code 1001).
A subsidy rate of 30,000 tenge per tonne is set for shipments transiting through Azerbaijan and Georgia to Black Sea ports; through Turkmenistan to Afghanistan; through China to Southeast Asian countries; and through Russia, Latvia, Lithuania, and Estonia to Baltic Sea ports.
A rate of 20,000 tenge per tonne is set for transit through Russia to ports on the Sea of Azov, the Black Sea, and the Baltic Sea; through Russia to Latvia, Lithuania, Estonia, Azerbaijan, Georgia, and Armenia; and through Turkmenistan to Iran.
For the national company, the draft also includes provisions for shipments to Tajikistan and China at a rate of 20,000 tenge per tonne.
Exporters are free to select their own railcar (or container) operator or freight forwarder. To qualify for the subsidy, applicants must submit, among other items, a copy of the export contract (including the registration number assigned by the bank), railway waybills stamped by the station of departure, and a contract with the railcar operator or freight forwarder. These documents must be submitted no later than 45 working days from the date the grain arrives at its destination station or port.