K.Aituganov: Use of worn-out equipment increases cost of repairs and fuels and lubricants by 20%

The measures which will be carried out within the framework of the technical re-equipment map will allow increasing the production of domestic machinery by 2.5 times. This was announced by First Vice-Minister of Agriculture Kairat Aituganov during a Government meeting.
Astana city 14 November, 11:27

Kairat Aituganov noted that nowadays the service life of 65% of tractors and 46% of harvesters exceeds 17 years.

"At the same time, 20% of tractors do not work, and 26% are subject to cancellation. The situation is similar for combine harvesters. The use of worn-out equipment leads to an increase in the cost of repairs and fuel on average by 20%, and most importantly, about 14% of the gross collection or about 200 billion tenge", the First Vice-Minister said.

According to him, 20 domestic producers of agricultural machinery are loaded not more than 30%, and imports more than 2 times prevail over production.

"If we replace the import of powerful combines and tractors with time, then we are quite able to change the situation in the so-called "small mechanization" - soil cultivation and foraging equipment. Within the framework of the map, it is envisaged, first, to introduce a soft loan program for agricultural machinery of domestic production with a final rate of up to 5%. Secondly, change the mechanism of investment subsidies", the speaker said.

This mechanism will be paid not to a buyer, but to a plant. As Kairat Aituganov noted, the plant will sell machinery at a discount for the amount of the subsidy.

"In general, until 2021, 217 billion tenge will be required for preferential crediting due to the return of funds, it is planned to ensure an optimal level of renewal of the agricultural machinery fleet. The proposed measures will allow to increase the pace of renovation of the machine and tractor fleet from 1.5 to 4%, the production of domestic machinery - 2.5 times", K. Aituganov explained.

In general, as K. Aituganov reported, the map of agricultural cooperation is already implemented.

"The database of processing enterprises was first formed. Considering the high share of imports, unloaded capacities and raw material potential, to determine the priority directions of processing represented by 435 enterprises. Due to the low efficiency of processing of agricultural raw materials, the industry annually receives less than one trillion tenge worth of products. These 435 will be uploaded, 80 will be upgraded and 79 small new plants will be built", K. Aituganov said.

The map will be financed by ensuring the availability of loans through the reduction of interest rates on loans. The total need of budget funds for 4 years will amount to 112 billion tenge.

"The implementation of the map will increase production of processing products from 1.9 to 3 trillion tenge and create 7,000 jobs", the First Vice-Minister said.

We remind that the agroprocessing map was encouraged on July 25 this year in the Government.

Akbota Kuzekbay