To date, in Afghanistan the imports cover nearly 90% of the annual domestic consumption of wheat, and reach nearly 3.1 mln tonnes. At the same time, Kazakhstan, Pakistan and other neighbouring countries are the major suppliers of the grain to the country by rail, because Afghanistan is the landlocked country, declared the First Deputy Chairman of the representative office of the Afghanistan Chamber of Commerce & Industries (ACCI) in Kazakhstan, Ulfatullah Atayee during his report within frames of the international conference KazGrain-2019 in Nur-Sultan, on April 4.
The government of Afghanistan plans to strengthen the trading relations with Kazakhstan, and plans to sign the agreement for the supply of 1 mln tonnes of wheat, in order to monopolize the wheat and flour business segment to control the prices on the domestic market and eliminate inflation in food products, the speaker said.
At the same time, the current terms of payment for wheat supplies already became the major obstacle slowing down the growth of grain supplies to the country, he added.
Until the buyer (Afghan company) pays the invoice in total (100%), the seller (Kazakh supplier) will not load the grain for voyage to Afghanistan. At the same time, Pakistani suppliers do business with Afghan companies solely based on trust and mutual benefit to both, also there's no demand of 100% advance payment, said A.Ulfatullah.
Also, the existing logistics problems in Kazakhstan jeopardize the volumes of grain supplies.
Due to the logistics problems, sometimes Kazakh companies take more than 30-45 days to deliver the cargoes, the expert said.
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