The collapse of rail transport in Kazakhstan puts pressure on the price of grain
Kazakhstan
Published Oct 27, 2022
Tridge summary
Kazakh traders and flour millers continue to face delays in grain deliveries both in domestic and export traffic. As of October 26, more than 500 wagons, both empty and loaded, are idle on the country's railway network. Downtime - from 5 to 20 days. At the same time, Kazakhstan needs a monthly export volume of 500-700 thousand tons of grain and flour in grain equivalent in order to prevent overstocking of the domestic market and reduce pressure on the selling price.
Original content
At the same time, the increase in deliveries to other destinations is hampered by increased transport costs, which were already high before. In particular, the cost of chartering dry cargo ships in the Caspian (and this is part of the TITR - the Trans-Caspian International Transport Route with an eye on European countries and the Mediterranean region) tripled during the year. At the same time, the main part of the increased logistics costs falls not on the buyer, but on the seller. That is, the profit of Kazakh farmers is decreasing. This deprives economic sense of entering those markets, transportation to which is expensive. That is why the agribusiness of Kazakhstan insists on the need to normalize the supply of grain and flour to Central Asia as soon as possible, and also asks the country's government to open China for shipments, ...
By clicking “Accept Cookies,” I agree to provide cookies for statistical and personalized preference purposes.
To learn more about our cookies, please read our Privacy Policy.