Azernews.Az

By Aynur Jafarova

Leasing Kazakhstan's agricultural lands to foreign companies requires legal elaboration, Regional Development Minister Bolat Zhamishev told Trend agency on January 21.

"It was about the investment commitments of those who intend to receive lands in Kazakhstan... If we are talking about the importance to attract investment of foreign companies in agriculture, it is important to understand how we should implement it. It is clear that we are not talking about the transfer of land to ownership, but only on lease. This is large complex of issues, primarily in the legal field, which still needs to be discussed in detail," he said.

The minister also noted first of all the Kazakh government should resolve the issue of the secondary lease of agricultural lands among the residents of the country as the secondary lease of agricultural lands is banned in the country.

Kazakhstan needs to make this issue clear as such a ban is a limit for the land commerce, he said.

Kazakh President Nursultan Nazarbayev has set two big tasks to the country's agro-industrial complex: to ensure food security and to transfer agriculture into an export field.

"It is important to direct agricultural sector of Kazakhstan to innovative way of development. We should eliminate all barriers to agriculture business enhancement and efficient land use'', Nazarbayev said on January 17.

In his message to the Kazakh nation, Nazarbayev noted those who introduce new technologies, continuously improves productivity, and works on the basis of the best international standards should work on the agricultural lands.

"First and foremost it is important to establish an effective land market, including through transparent price determination mechanisms. Given the investments and introduction of advanced technologies, the lease of farmland will increase the competitiveness, and we should not be afraid of it, even if the foreign companies will lease and show the best examples of how to deal with land and to produce the agricultural goods," the president said.

He also recommended removing all barriers impeding the business development in the agricultural sector.

Agriculture is considered to be one of the key sectors of the Kazakh economy. Kazakhstan is rich in land resources. More than 74 percent of the country's territory is suitable for agricultural production, representing 5.5 percent of GDP and employing over 20 percent of the labor force, with 43 percent of the population living in rural areas.