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Kazakhstan ready to export flour to Central Asian neighbors under certain conditions

Business Materials 6 April 2020 18:29 (UTC +04:00)
Kazakhstan ready to export flour to Central Asian neighbors under certain conditions

BAKU, Azerbaijan, Apr. 6

By Nargiz Sadikhova – Trend:

Kazakhstan’s Union of Grain Processers considers possible export of flour to other Central Asian countries as the quotas on wheat and flour were introduced if a number of conditions are implemented, Trend reports with reference to Kazakhstan’s APK-Inform website.

The issue was addressed in an official letter of the Union to Kazakhstan’s Prime Minister Askar Mamin and Minister of Agriculture Saparkhan Omarov.

The union said that due to restrictions introduced in the export of Kazakh flour, usual countries-importers (Uzbekistan, Tajikistan and Kyrgyzstan) started officially submitting requests to import Kazakh flour.

“There is no doubt that assistance to countries is absolutely logical, and Kazakh flour milling ventures are ready to supply the required amount of flour to these countries. However, in the current situation, when we are essentially implementing a humanitarian mission, it must be noted that almost all countries apply non-tariff restrictions to the import of Kazakh flour,” the letter said.

The union added that in the current situation, the union considers it necessary to take into account the restrictions in the importing countries regarding the supply of flour from Kazakhstan, as well as carry out deliveries exclusively in the form of flour (i.e. not the raw materials) and only on the condition of the removal of non-tariff restrictions on to the supplied flour.

On Apr. 3, 2020 Kazakhstan’s Ministry of Agriculture announced the volume of wheat and flour permitted for export in April 2020.

The ministry said that 200,000 tons of wheat and 70,000 tons of flour can be exported from the country this month.

At the same time, traders must supply 30 percent of the exported volume to the local market by set prices. A ton of 3 and 4 class wheat for the local market must be sold for 84,000-86,000 tenge ($187-196).

In turn, flour must be sold for 120,000 tenge ($268) per ton in Akmola, North Kazakhstan, Kostanay, Pavlodar, East Kazakhstan, Karaganda regions and Nur-Sultan cities, and for 130,000 tenge ($290) in other Kazakh regions and cities of republican importance.

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