The Audit Chamber Revealed Weak Control Over Seed Production Subsidies

Ирина Орлонская Economy
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The Audit Chamber revealed weak control over seed production subsidies


From January 1, 2020, to September 30, 2025, the Audit Chamber of Kyrgyzstan conducted an assessment of the effectiveness of state subsidies intended to support seed production farms. The results of the audit showed that the current state support in this area is insufficiently effective.

The audit identified several systemic problems that negatively affect the implementation of the National Development Program of Kyrgyzstan until 2026, as well as the action plan of the Cabinet of Ministers for supporting seed production.

According to the Audit Chamber, measures to stimulate seed production through subsidies and the provision of high-yielding seed varieties did not achieve the planned results. From January 1, 2022, to September 30, 2025, only 166.7 million soms were utilized, which corresponds to just 30.7% of the total allocated funds.

The main reason for the low level of budget fund utilization was the insufficient information provided to agricultural producers about the opportunities for state support and weak efforts to clarify these issues.

There were also instances of financing subsidies without prior approval of estimates and the absence of necessary regulatory documentation, indicating violations of budget legislation.

From 2020 to 2025, 197.5 million soms were allocated to support seed production. However, the Ministry of Water Resources, Agriculture, and Processing Industry did not exercise proper control over the effective use of these funds and did not develop the necessary regulatory acts.

The audit emphasized the lack of a clear strategy and coordination mechanism among the participants in the subsidy program, as well as the inadequacy of the regulatory framework, including regarding the timing of subsidy payments and the accountability of officials.

No analysis was conducted on the impact of certified seeds on the yield of agricultural crops, and yield indicators were not compared with district averages.

During the period from 2020 to 2025, 26,126.6 tons of seeds were declared for subsidies, of which 16,628.2 tons were sold, accounting for 63.6% of the total volume.

Overall, seed production farms were able to supply farmers with seeds for only 13.5%, and the share of seeds sold under the state subsidy amounted to just 3%.

On average, 31 farms participated in the subsidy program for spring sowing and 25 for winter sowing.

Additionally, it was noted that regional commissions did not conduct proper monitoring of the work of seed production farms and did not provide timely recommendations to the relevant authorities.

In conclusion, the Audit Chamber emphasized the need to enhance the effectiveness of state support in seed production. This includes developing a clear mechanism for implementing the subsidy program, strengthening control and monitoring, expanding informational work with farmers, improving budget planning, and implementing evaluation mechanisms.
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