Astana, Kazakhstan, Sept.15
By Daniyar Mukhtarov - Trend:
Kazakhstan this year established fair purchase prices for grain, the head of the republican public association "Union of Farmers of Kazakhstan" Auezkhan Darinov said.
"The purchase price of the grain from the current crop is quite reasonable, as it will now depend entirely on the level of gluten. Such an approach would encourage farmers to advocate for quality of the grain grown," Darinov told reporters, commenting on the statement of "Food Contract Corporation" on the new purchase prices for grain of the current harvest.
The "Food Contract Corporation" revealed commercial procurement prices for grain procurement Sept.10.
Thus, the cost of wheat Triticum aestivum L. 3 class will be 35 000 tenge (at the rate of $1-182 tenge - about $192.3) per metric ton for VAT payers and 33,950 tenge ($186.5 ) per metric ton for non-payers of VAT at a gluten level of 23-24 percent.
If the gluten level is above 25 percent, it will make 36 000 tenge ($200) for VAT payers and 34,920 tenge ($191. 8) per metric ton for non-payers of VAT. As is known, Kazakhstan's grain is on demand in the global grain market due to its quality: high content of gluten.
A new scheme of grain purchase taking into account VAT will be a help for small farms, according to Darinov.
"At present, the peasants VAT payers have been equated with payers. That is to say small farms will further benefit 2,700 tenge ($14.8) per metric ton. Thus, small farms will be equal to large LLPs, holding companies and other payers of 12 percent VAT, which have a discount of 70 percent for VAT, although both of them carry the costs per hectare. Small farms also buy herbicides, equipment and so on, at the same prices as the huge farms. In short, the market has become fairer," the head of the Union of Farmers of Kazakhstan said.
He added that this was made possible with the creation of the Single grain holding, which was able to defend the interests of farmers before the "Food Corporation" and the Ministry of Agriculture.
The average annual grain harvest up to 2015 accounts for 17.8 million metric tons in Kazakhstan, and it is planned to increase the export potential up to 8.6 million metric tons, according to official data.