The sharp increase in the cost of analysis when issuing a phytosanitary certificate for exported flour was reported by the Union of Grain Processors of Kazakhstan. The millers reported that the tariff increased almost tenfold starting from November 24. This price hike will lead to the loss of export markets and severely impact the milling industry, reports the APK-Inform agency.
"The Union of Grain Processors of Kazakhstan expressed serious concern regarding the sharp increase in the cost of entomological analysis when issuing a phytosanitary certificate for exported flour, which directly affects the cost of production and reduces the competitiveness of domestic flour in foreign markets," said the head of the Union, Zhomart Motyshov.
According to his data, until recently, the cost of the said analysis was 42 tenge per ton, which averaged 2,856 tenge per wagon (≈68 tons). However, starting from November 24 of the current year, milling enterprises were officially notified of changes in the analysis procedure.
According to the new procedure, the inspection is now carried out for each wagon separately, with the cost of the service increased to 22,630 tenge per wagon.
"Thus, the tariff increase amounted to almost ten times, which raises serious doubts about its economic justification and feasibility," noted Z. Motyshov.
Such an increase in expenses will directly affect the cost of finished products, reduce their competitiveness in foreign markets, and create additional barriers to export activities, according to the Union.
"The President of the Republic of Kazakhstan in his Address emphasized that in conditions of increasing global competition and changing world commodity flows, effective sales policy becomes particularly important. Kazakhstan must preserve and strengthen the domestic and export niches that have been formed over the years. The Government is tasked with expanding the geography of exports and promoting domestic goods in foreign markets. At the same time, the President set an ambitious goal to increase the share of processed products in the agro-industrial complex to 70% within three years. Achieving this goal is impossible without creating and maintaining stable, predictable, and economically justified conditions for foreign trade activities," noted Zhomart Motyshov.
The millers declare that the sharp increase in the cost of services when issuing a phytosanitary certificate for exported milling products will inevitably lead to a significant increase in the cost of grain processing products. This creates real risks of losing traditional export markets and weakening Kazakhstan's position in the segment of processed, non-raw products.
The Union of Grain Processors of Kazakhstan has sent a letter to the Ministry of Agriculture, as well as to the National Chamber of Entrepreneurs "Atameken," requesting assistance in overturning the decision regarding milling products and grain processing products.