Kazakhstan: Where to put the annual gross volume if the government actively interfered in export trade

Published 2024년 10월 17일

Tridge summary

Kazakhstan's grain market is facing significant challenges due to a surplus of over 28 million tons of grain, with limited export opportunities to neighboring countries like Uzbekistan, Tajikistan, China, Afghanistan, and Iran, which can only absorb about 7 million tons. The situation is exacerbated by competition from Russian flour, logistical issues, corruption, and market volatility, particularly in Afghanistan. Farmers are experiencing financial difficulties for the second consecutive year, struggling with low-quality wheat and poor market prices, which prevent them from covering expenses such as credit obligations and employee salaries. The government's intervention is deemed necessary to prevent the collapse of the industry, as current efforts by the Food Corporation to support prices are insufficient.

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Original content

If the Government has been interfering in export trade all this time, introducing various restrictions, then let it now solve the problem of how to save the entire industry from collapse. This was stated by the Union of Grain Exporters. According to its head, the country has accumulated too much grain, and there are practically no markets that can accept it, the APK News agency reports. “This year, Kazakhstan has produced a lot of grain, according to industry organizations - more than 24 million tons. It is worth noting that 80% of the gross wheat harvest is of low quality, that is, low gluten and natural weight, exceeds grain impurities (shrinking, broken, etc.). In addition, there is a carryover of last year's grain. According to the National Bureau of Statistics, the remainder is more than 4 million tons. It turns out that there are just over 28 million tons of grain on the domestic market,” said Zeinolla Abdumanapov, Chairman of the Board of the National Association of ...

Source: Oilworld