Government of Kazakhstan considers measures to stabilize grain market

First Vice Minister of Agriculture Kairat Aituganov reported on the situation in the grain market of the country during the meeting of the Government chaired by Prime Minister Bakytzhan Sagintayev.

According to Kairat Aituganov, prices in the world market have stabilized in the medium term and a tendency of their increase is appearing. At the same time, in the domestic Kazakhstan market this year, despite the absence of fundamental factors, since September there has been a great disparity in prices, there is a rapid decline in prices in the domestic market and a reduction in demand.

As the speaker noted, one of the main reasons was the record grain harvest in Russia, which created an excessive amount of cheap grain in the regions bordering with Kazakhstan, as well as issues of securing grain transportation that require a special approach.

In this regard, a number of measures are proposed to stabilize the grain market. First, through the Food Corporation, to purchase food wheat in the amount of up to 2 million tons at a price of 42,000 tenge per ton, including VAT. Secondly, to strengthen control over the import of Russian grain and its legalization without paying VAT. Thirdly, to solve the issue of wagons for grain shipment and ensure the maximum barrier-free registration of export documents (certification, etc.), including through the integration of the information system of grain receipts and the information system of KTZh NC.

"These measures will allow us to balance the domestic grain market, provide a fair price for Kazakh farmers, improve the financial situation of agricultural producers, provide training for the spring-field works in 2018," said Kairat Aituganov.

The importance of the proposed measures with comments was made by the chairman of the Union of Farmers of Kazakhstan Auezkhan Darinov and the akims of a number of large grain-growing regions.

Summing up the consideration of the issue, the Prime Minister noted that the issue was considered daily during the last week with representatives of the public, associations, with all interested parties, including the National Bank of Kazakhstan. As a result, it was decided to increase procurement prices for grain.

"Now it remains to conduct the procurement — this is the biggest work, it must be done quickly and transparently," Bakytzhan Sagintayev emphasized.

In this regard, regional akims are instructed to set up special procurement headquarters with the participation of representatives of the public, regional chambers of entrepreneurs. The goal is to bring the money to the addressees.