Kazakhstan Expands Grain Export Logistics Support
Kazakhstan is strengthening its grain export logistics amid high harvest volumes and rising domestic stocks. Grain exporters have been advised to ship new-season wheat before the end of 2025 in order to qualify for transport cost reimbursement scheduled for early 2026. More than 30 billion tenge (approximately US$60.6 million) will be allocated next year under a state support program aimed at offsetting elevated logistics expenses.
According to the Ministry of Agriculture, exporters are encouraged to plan shipments in advance, as delivery to subsidized destinations may take up to 30 days. Eligibility for subsidies in 2026 requires documentary confirmation that cargo physically arrived at its destination within the relevant calendar year.
Kazakhstan achieved a record grain and oilseed harvest in 2024. However, limited demand in traditional Central Asian markets led to oversupply risks and downward pressure on domestic prices. In the fourth quarter of 2024, increased competition and constrained export routes resulted in a noticeable decline in wheat prices on the domestic market.
In response, the government introduced transport subsidies to expand export geography and stimulate shipment volumes. As a result, rail grain exports increased significantly across nearly all international directions in January–November 2025. Exports to Black Sea ports rose by 150%, shipments to Russian Baltic ports increased by 196%, deliveries to the Baltic states grew by 799%, exports to Azerbaijan expanded by 556%, and shipments to Iran rose by 197%.
The diversification of export routes contributed to the stabilization of domestic prices, reduced dumping risks, and supported related sectors, including logistics, processing, machinery manufacturing, and services.
A strong grain harvest was again recorded in 2025, while substantial carry-over stocks remained on the domestic market. Given the effectiveness of the subsidy mechanism, the government has decided to continue support measures for grain producers and exporters in 2026.
Total rail grain shipments reached 12.6 million tons in 2025, representing a 34% year-on-year increase, with exports accounting for 9.7 million tons. During the September–November period, shipments totaled 4.4 million tons, up 21%, while exports increased by 19% to 3.4 million tons.
By December 2025, domestic wheat prices were 40–50% higher compared to December 2024, despite ample supply. Transport subsidies, estimated at approximately US$40 per ton, are expected to enhance producers’ financial stability, improve the competitiveness of Kazakh wheat, and strengthen Kazakhstan’s presence in markets across Europe, Africa, the Middle East, and Central Asia.
Photo credit: Agriculture Ministry
