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Kyrgyz PM flies to Russia for grain purchase talks

Business Materials 2 October 2007 13:54 (UTC +04:00)

( RIA Novosti ) - Kyrgyzstan's prime minister has flown to Russia for talks on grain purchases against the backdrop of a sharp decline in domestic grain reserves and a price hike.

The Central Asian state's parliament passed budgetary amendments Tuesday to allocate an extra $20 million to buy grain and curb growing bread prices. The price of a sack of wheat climbed 10% to about $60 over the weekend, as lawmakers claimed that "virtually no grain" was now left in the country's warehouses.

Russia and Kazakhstan are the main grain suppliers to the Central Asian state. The two countries are considering measures to control domestic prices as global wheat supplies have dropped dramatically following droughts in Ukraine, Europe and Canada.

Russia's Economic Development and Trade Ministry announced plans to impose export duties on barley and wheat as of December 1 in an attempt to limit export volumes.

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