Will wheat from Kazakhstan help Azerbaijan survive the world shortage?

Published Apr 29, 2022

Tridge summary

Azerbaijan is facing a challenge due to the escalating global wheat prices, influenced by inflation and geopolitical tensions, as well as Russia's increasing export duties on wheat. This situation prompts Azerbaijan to contemplate diversifying its grain sources, with Kazakhstan emerging as a potential alternative. Kazakhstan's grain union highlights a growth in wheat exports to Azerbaijan this season, despite logistical and payment issues, and notes the lack of export duties in Kazakhstan. The article underscores the difficulties in rapidly increasing grain exports to Azerbaijan due to the need for long-term contracts and government preferences, as well as Kazakhstan's requirement for exporters to sell a certain percentage of their planned exports to the Kazakh Food Corporation.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Wheat prices on the world market are growing at an accelerated pace. Azerbaijan, which depends on more than 40% of imports, may consider diversifying its sources of supply. In the context of accelerated global inflation, caused, among other things, by the tense geopolitical situation, diversification of the supply of vital food products is one of the main tasks facing governments. Azerbaijan is also implementing a program to ensure food security, within the framework of which a system for operational monitoring of food stocks has been created. In addition, Azerbaijan intends to diversify the import of grain products, as the main supplier of grain to the country - Russia - is steadily increasing the export duty for wheat. According to the Ministry of Agriculture of the Russian Federation, the export duty on wheat from April 27 to May 5 inclusive will be $119.1 per ton. In the period from April 20 to April 26, inclusive, this duty was $110.7 per ton. Given the growing demand for ...

Source: Zol