Kazakhstan will not restrict wheat exports with duties and bans

The issue of imposing a duty on wheat exports from Kazakhstan was removed from the agenda of the government’s interdepartmental commission. Restrictive actions have been deemed unnecessary for the time being.

According to the above calculations, the introduction of duties on exports of soft and durum wheat, based on the average volume of wheat supplies in 2020-2022, could have provided budget revenues of $297.8 million (129 billion tenge).

However, exporters warned that restrictions on Kazakh wheat exports would lead to a collapse in domestic prices and bankruptcy of a large share of farmers.

Also, did not consider the issue of lifting the ban on the import of Russian wheat to Kazakhstan by road, introduced in April 2023 and valid until April 2024. This measure helped to reduce the supply of smuggled wheat from Russia and led to the stabilization of prices in the domestic market.

According to the official data, Kazakhstan exported 5.67 mln tons of wheat worth $1.5 bln in January-September 2023, which is 42% more than in the same period of 2022 (4 mln tons worth $1.24 bln).

During the same period (January-September 2023), wheat imports from Russia amounted to 2.97 mln tonnes worth $236.6 mln, which is 2.5 times more than in the same period of 2022 (1.16 mln tonnes worth $241 mln).

Kazakhstan’s own wheat harvest in 2023 amounted to 11.5 mln tonnes, of which about 6.5 mln tonnes were quality grain. The carry-over from the last agricultural season is 3 million tons.

Kazakhstan’s own demand for wheat to meet its food needs is about 2 million tons. Another 2 million tons are needed for seeds. Thus, Kazakhstan’s export potential for milling grain this season is over 6 million tons.

Tags: Kazakhstan, wheat, restrictions