Kazakhstan can ban the import of grain from the Russian Federation by road transport - exporters

Source

APK-Inform

2452

Kazakhstan is considering a temporary ban on the import of grain from Russia by road to support domestic producers and businesses. This issue was discussed at a meeting with the exporters, industry associations, and relevant ministries, but an official decision has not yet been made, as the National Association of Exporters "KazGrain" informed APK-Inform about this.

According to the exporters, such a measure is being considered in order to support domestic agriproducers and maintain prices for Kazakh wheat. KazGrain claims that there are all the reasons for a further decrease in grain prices – the planting campaign is coming soon, and therefore agriproducers will try to sell the remaining crops and the supply on the grain market will increase.

"We offered to introduce a complete ban on the import of grain from Russia by both road and rail transport for 3 months in order to stop the decrease in grain prices for domestic farmers due to pressure on the market from cheap Russian wheat. It does not make sense to separately prohibit the importation only by road transport, since the gray import of wheat by rail will continue. But our proposal was not supported", - said the National Association of Exporters "KazGrain".

The approaching month of Ramadan is another factor affecting the grain market in the countries of Central Asia, during which there is a traditional decrease in demand for food. In order to support the prices of Kazakh grain during this period, exporters are also asking to be allowed to export grain to China by grain trucks.

At the same time, the participants of the flour market of Kazakhstan do not agree that the ban on the import of Russian wheat will achieve its goal – to increase wheat prices in Kazakhstan.

"This is an artificial attempt to raise the price for wheat, which is not going to be successful. Warehouses of flour mills are full of finished products. Therefore, we are waiting for a further decrease in grain prices," processors say.

In case domestic wheat prices rise, the cost of livestock and poultry feed may increase sharply, which will ultimately affect the prices for finished products.

In addition, Russian wheat and flour will still continue to enter the traditional markets of Kazakhstan - to Central Asia and Afghanistan, bypassing the transit through the territory of Kazakhstan. The southern regions of the Russian Federation are already actively shipping grain to Afghanistan under this scheme.

APK-Inform monitors the development of the situation and will inform about all changes in the news feed.

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