Starting August 1, the United States will impose a 25% tariff on starch and gluten produced in Kazakhstan. Access for deep processing enterprises to the key market will be significantly limited. In this regard, the Ministry of Agriculture has initiated changes to the Order on subsidizing processing enterprises' costs for purchasing agricultural products for deep processing. Now, wheat purchases for gluten production will be subsidized, reports the APK News agency.
As reported to us by the Ministry of Agriculture of Kazakhstan, the Rules for subsidizing processing enterprises' costs for purchasing agricultural products for deep processing production were approved back in 2014. This order remains in effect to this day.
Regarding the question of whether grain purchases for deep processing are currently subsidized, the ministry responded:
"Currently, wheat purchases for gluten production are not being carried out due to the absence of subsidy norms for wheat within the aforementioned Subsidy Rules.
It should be noted that on March 14, 2025, during the IV National Kurultai, the Head of State set a task for the Government to ensure Kazakhstan's entry into the top ten global producers and suppliers of deep grain processing products within 10 years.
Meanwhile, in the context of changing foreign economic conditions, deep grain processing enterprises are facing serious challenges. More than 60% of the gluten produced was previously exported to the United States. Currently, the US has imposed a 25% tariff on goods from Kazakhstan and limited access to the key market.
To improve the competitiveness of deep grain processing products, the Ministry of Agriculture has developed a draft regulatory legal act providing for subsidizing wheat purchases for gluten production."
The Ministry also noted that demand for high value-added products is growing annually on both domestic and global markets. Modern technologies allow extracting over 200 types of products from grain. Moreover, added value can be obtained through the production of gluten, starch syrups, amino acids, and biopolymers, which exceeds the cost of grain by up to 10 times.
"Developing high-tech production in Kazakhstan will increase the share of processed agricultural products, expand the range of export-oriented high-end products, attract qualified personnel, create new jobs, and increase tax revenues. It can also serve as a tool for attracting investments and a source of development for related industries and income in the near future," the agency summarized.
As previously reported, changes