Baku, Azerbaijan, Sept. 7
By Fakhri Vakilov - Trend:
Some flour manufacturers of Kazakhstan work only for the domestic market, while others move to neighboring Uzbekistan, where the government created ideal conditions and facilities for the development of the industry, Trend reports citing Forbes Kazakhstan.
High grain prices of the new crop and transportation costs do not allow grain processors in Kazakhstan to start shipping abroad.
At the moment, it is known that several flour mills from Turkestan and Karaganda regions of Kazakhstan moved production to Uzbekistan.
According to the director of the large Karaganda mill complex "Mutlu" Dos-Mukasan Taukebaev, Uzbekistan has at least six advantages in this industry over Kazakhstan in this industry.
“First, grain can be imported there without VAT, and imported flour is taxed at a rate of 20 percent. Second, the transit of a ton of flour through Uzbekistan to Afghanistan costs $47 for us, and the transportation costs of Uzbek producers in the same direction cost only $22, ” he explained.
The third reason - the exemption for 5 years of Uzbek flour mills from many types of taxes by the president of Uzbekistan.
“Fourth reason: if we have an average loan rate of 14 percent and it is issued for seven years, while in Uzbekistan - at 4 percent to 15 years. Fifth, the cost of electricity is 20 tenge per kilowatt, in Uzbekistan - no more than 10 tenge. Sixth, the workforce there is also half the price: our company has an average salary of 140,000 tenge per month, in Uzbekistan – 80,000 tenge, ” said Taukebaev.
Thus, while the flour mills of Kazakhstan are waiting for the situation to improve, Uzbekistan is pushing forward. Because of this, Kazakhstan, which in 2007-2010 was the world's leader in export of flour, runs the risk of falling to third place. Turkey currently is in the first place.
($1=384.30 KZT on Sept. 7)
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