The Ministry of Agriculture has prepared a draft order to ban the import of wheat into the territory of the Republic of Kazakhstan by road, water, and rail transport. However, the import of wheat by rail is allowed exclusively for poultry and flour milling enterprises for production and consumption purposes, with the wheat not intended for sale on domestic or foreign markets.
The ban will also not apply to wheat imported into Kazakhstan as part of rail transit shipments that start and end outside the territory of the Republic of Kazakhstan. The explanatory note states that a decision to impose the ban on wheat imports via the specified modes of transport was made during a meeting of the Interdepartmental Commission on Foreign Trade Policy.
Developers clarify that the domestic Kazakhstan market has sufficient reserves of food and feed grain. In 2023, 12.1 million tons of wheat were harvested. Taking into account processing and export volumes as of March 1 of the current year, grain stocks amount to 11.5 million tons. In addition, the Food Corporation made a direct purchase of 350 thousand tons of feed grain.
At the same time, additional grain arrives in Kazakhstan from Russia, leading to a decrease in demand in the domestic market and a drop in prices. For instance, in January of the current year, 174 thousand tons of wheat were imported from Russia by rail, which is 35% more than in 2022. During the summer navigation period, 29 thousand tons of wheat were imported by water transport, further increasing the volume of Russian wheat in the domestic market.
The growth in imports exacerbates the issue of selling lower-grade wheat. The lack of a grain market leads to a deterioration of the financial situation of domestic agricultural producers, which could result in the disruption of the sowing campaign in 2024.
The draft is available for public discussion on the "Open Regulatory Legal Acts" portal until March 26, 2024. Currently, Kazakhstan has a ban on the import of wheat by road and rail transport.
Previously, Kazakhstan extended the ban on the export of liquefied petroleum gas for another six months.
