"Asia Grains & Oils Conference in Tashkent", Tashkent, Uzbekistan
Sep 8, 2021

Russian wheat pressures Kazakh export prices




According to APK-Inform, since the beginning of 2023, the export prices of milling wheat have been decreasing in Kazakhstan due to pressure from cheaper Russian origin. Thus, the demand from the main importers is decreasing.

Thus, the offer prices of Kazakh milling wheat are announced at 295-298 USD/t DAP Saryagash. While the offer prices of Russian wheat are at 270-275 USD/t DAP.

“The trend is not good, if we lower the price of Kazakh wheat to Russian prices, then the Russians will lower it even lower. They will simply “kill” our market, because we cannot equal Russia. They have higher yields, lower production cost, they subsidize grain and the agricultural producers. Our agricultural producers harvest 1.0-1.2 t/ha, when it is 1.5-2.0 t/ha in Russia. Therefore, their prime cost is lower than our”, – market participants explained to APK-Inform.

Representatives of Kazakh business are convinced that the authorities should shut down all "grey" grain schemes.

“Everything should come in officially from Russia, VAT should be paid. Then we will have some stabilization probably”, – market participants note.
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