Subsidising agriculture in EAEU

Abstract

The article considers the topical issues of the agricultural sector financial support to include the kinds of subsidies and their allotment. The roles of subsidies in the development of the agricultural sector of Kazakhstan have also been defined. State support is a part of the agricultural policy equalising the aftermath of the unequal commodity exchange of the agriculture with other sectors and ensuring the efficient agricultural production as a whole. State support of the agricultural business in the EAEU was analysed and the concept of improvement of this support by unification of existing principles, procedures and mechanisms to ensure fair competition of the producers (by subsidies) was substantiates. Unification of state administration in the EAEU would create equal economic conditions for agricultural producers, boost production and protect the producers’ interests in the internal and external markets. Moreover, it would solve the problem of food supply as well as the other EAEU development problems. According to the developed countries’ experience, a comprehensive support of the agriculture by the state provides for the proper efficiency and competitiveness of agricultural production in combination with other measures. It would strengthen Kazakhstan’s position in the Eurasian agricultural market.

Keywords: agriculture, agricultural production, state financial support, subsidising,
subsidizing, integration, EAEU member states.