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Grain inspection proposed to be restored in Kazakhstan

Business Materials 5 September 2014 11:10 (UTC +04:00)
Kazakhstan needs to restore grain inspection, so that it can help to defend rights in disputes between deliverers and grain receiving stations,
Grain inspection proposed to be restored in Kazakhstan

Astana, Kazakhstan, Sept. 5

By Daniar Mukhtarov - Trend:

Kazakhstan needs to restore grain inspection, so that it can help to defend rights in disputes between deliverers and grain receiving stations, Kazakh Farmers' Union Head Auezkhan Darinov told reporters.

"Our union insists on restoring the once-existing state grain inspection, with its rights and opportunities. Moreover, we offer to grant the grain inspection the right to settle controversies between the deliverers and grain receiving stations, for the inspectors to be able to make a final decision in disputes," Darinov said.

He said the owners of grain receiving stations, manipulate the numbers on paper, and thus have the opportunity to misappropriate an ample share of grain stored in their facilities. The union estimates that there are over ten ways for that.

"One of them is the manipulation of grain moisture indicator. Farmers deposit 100 metric tons of grain with moisture content of 15 percent. Under the contracts the grain receiving stations should bring the moisture to 13 percent," Darinov said.

He added that allegedly the stations dry grain to this moisture level.

"But in fact, almost in all export contracts the humidity level stands at 14 percent, that is, there is no need to dry the grain up to 13 percent, and no one in fact does this. The grain receiving stations simply mix wet grains with those, which have less humidity content," Darinov explained.

"The farmer has to lose only one metric ton, but in fact he loses two metric tons, one of which is deposited at the station. Our calculations show that the manipulation of only 0.5 percent humidity allows the grain receiving stations to illegally privatize about 70,000 metric tons of grain literally out of nothing, not producing or investing anything," the country's chief farmer said.

Darinov estimates that on average, each farmer, who does not have his own facility for storing grain, has to lose about 20-25 percent of the crop, in order to save the remaining 75-80 percent.

"Farms are the most vulnerable in this case. In 2013, the farms in the country produced 4.7 million metric tons of wheat, while they lost about one million metric ton of grain and money for the payment of the services rendered by the grain receiving stations. This is the one third of the grain collected by them," he said.

Kazakh Farmers' Union sent proposals to Agriculture Ministry on the operation of elevators and grain receiving stations. In its letter, the union asks to set uniform and basic terms on humidity and impurity content.

Thus, the procedure of delivery/receiving grain will become transparent, the union's head said.

The official exchange rate for Sept. 5 is 182 tenge/$1.

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