Kazakhstan Expands Support for Grain Export Logistics
Kazakhstan is strengthening its grain export logistics amid record harvest volumes and elevated carry-over stocks. Grain exporters are advised to begin shipping new-season wheat before the end of 2025 in order to qualify for transport cost reimbursements scheduled for early 2026. More than 30 billion tenge (approximately US$60.6 million) is planned to be allocated next year under a state support program aimed at offsetting rising logistics costs.
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. A key requirement for subsidy eligibility in 2026 is documentary confirmation that cargo physically arrived at its destination within the relevant calendar year.
Kazakhstan recorded a historic grain and oilseed harvest in 2024. However, limited demand capacity in traditional Central Asian markets led to oversupply risks and downward pressure on domestic prices. In the fourth quarter of 2024, amid heightened competition and constrained export routes, wheat prices declined significantly on the domestic market.
In response, the government introduced transport subsidies to expand export geography and increase shipment volumes. As a result, rail grain exports rose sharply across nearly all international routes during January–November 2025. Exports to Black Sea ports increased by 150%, shipments to Russian Baltic ports by 196%, deliveries to the Baltic states by 799%, exports to Azerbaijan by 556%, and shipments to Iran by 197%.
The diversification of export routes contributed to stabilizing domestic prices, reducing dumping risks, and supporting related sectors, including logistics, processing, machinery manufacturing, and services.
Kazakh farmers harvested another strong crop in 2025, while substantial carry-over stocks remained on the domestic market. In light of the positive impact 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. In 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 support producers’ financial stability, enhance the competitiveness of Kazakh wheat, and strengthen Kazakhstan’s position in markets across Europe, Africa, the Middle East, and Central Asia.
Photo credit: Agriculture Ministry
