Kazakhstan to allocate 495 billion tenge for development of sugar industry

The comprehensive plan provides for the expansion of sugar beet sown areas, the introduction of new irrigated lands, the introduction of water-saving irrigation technologies, the development of seed production, the technical re-equipment of existing sugar beet processing enterprises, as well as the construction of a new innovative plant, El.kz reports with reference to the Ministry of Agriculture.

Vice Minister of Agriculture Abulkhair Tamabek told how the sugar industry will be developed in Kazakhstan at a government meeting.

"In addition, for sugar producers from January 1, 2023, VAT will be reduced to 70%. The comprehensive plan provides for an action to extend the duration of the preference, as well as the addition of cane sugar to the list. In addition, issues of introducing a minimum level of sugar prices, improving the mechanism for providing state support measures, including increasing subsidy standards for the delivery of sugar beet for processing and standards for subsidizing seed production, taking into account the growth in prices for seeds and hybrids, will be worked out," the vice minister said.

The total investment in the development of the raw material base will be about 495 billion tenge. The required amount of subsidies for material and technical values is 168 billion tenge, including subsidies for replenishment of fixed and working capital of sugar factories - 39.3 billion tenge.

The implementation of the Comprehensive Plan will allow in the next 5 years to bring the volume of sugar production from domestic raw materials to 250 thousand tons annually. At the same time, by 2026, compared to 2021, the share of imports will decrease from 58% to 17%, the security due to the processing of domestic raw materials will increase from 7% to 43%.

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