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Kazakhstan may lift export restrictions on grain, flour

Business Materials 13 May 2020 14:48 (UTC +04:00)
Kazakhstan may lift export restrictions on grain, flour

BAKU, Azerbaijan, May 13

By Nargiz Sadikhova - Trend:

Kazakhstan is planning to lift restrictions on export of grain and flour in June 2020, Kazakhstan’s Minister of Agriculture Saparkhan Omarov said, Trend reports with reference to Kazakhstan’s Tengrinews agency.

Omarov said that all prohibitions and quotas were introduced temporarily.

“Currently, as coronavirus quarantine measures are being simplified normal trade will be gradually restored and we must respond dynamically to this. Therefore, from June 1, 2020 there are plans to remove all previously imposed restrictions on grain and flour export, as well as for other food products,” Omarov said.

In Omarov’s words there is a number of reasons to lift the restrictions:

- The introduced bans and quotas led to good results, Kazakhstan had the ability to harvest new crops and mitigate food security risks;

- The measures were taken in time, and regional stabilization funds laid down a supply of flour and other food products;

- The sowing campaign in the main grain-growing regions has begun, all preparatory work has been carried out, moisture conversation is sufficient. All this makes it possible to predict crops growing that will fully ensure the country's food safety.

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.

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