Astana, January 9, 2026
Kazakhstan’s Agency for the Protection and Development of Competition has identified violations of competition law in the administration of subsidies for grain transportation linked to exports, following an analysis of how the support scheme was implemented.
The review examined the application of subsidy payment rules approved by an order of the Minister of Agriculture dated March 3, 2025, which set out the framework for compensating part of the costs associated with grain transportation. The analysis focused on the role of JSC “National Company Food Contract Corporation,” which acts as the operator of the state support mechanism.
Unequal Treatment Of Applications
According to the Agency, signs of violations of Kazakhstan’s competition legislation were found in the actions — and inactions — of the Food Contract Corporation. In particular, the authority identified deviations from the application review sequence stipulated in the subsidy rules.
The analysis revealed that some applications were reviewed with significant delays, ranging from 80 to 112 days beyond the established deadlines, while other applications submitted later were processed swiftly within a single commission meeting.
Subsidies Concentrated Among Few Companies
The Agency said these practices led to a substantial concentration of budget funds among a limited group of recipients. Based on the outcomes of six commission meetings, more than 60% of the total subsidy amount was allocated to a small number of companies, while applications from other market participants were unjustifiably postponed.
Such distortions, the authority noted, undermined equal access to state support and created competitive disadvantages for other participants in the grain market.
Corrective Measures Ordered And Implemented
In response to the findings, the Agency sent a formal notice to the Food Contract Corporation identifying signs of anti-competitive conduct and requiring corrective action. The authority demanded that the violations be eliminated and that strict chronological order be observed when reviewing applications to ensure equal access to subsidies for all market participants.
The Food Contract Corporation has since informed the Agency that the notice has been complied with. To prevent similar violations in the future, the company plans to introduce several measures, including accepting applications through an electronic portal and publishing information on its official website showing the date and time each application is registered.
The Agency said it will continue monitoring the implementation of these measures to safeguard fair competition and transparency in the allocation of state support.
Source: https://www.gov.kz/memleket/entities/zk/press/news/details/1138775?lang=kk
