The Ministry of Agriculture of Kazakhstan remains in the position of introducing quotas for the export of wheat (1 million tons) and flour (300 thousand tons) for a period of two months. There will be no total export ban. The head of the Ministry of Agriculture, Yerbol Karashukeev, reaffirmed that there is a sufficient supply of grain in the republic.
“Flour millers and agricultural producers cannot agree on the price at which grain will be sold and at what price the milling enterprises will buy it. And the main part of this volume - 80% - is exported. Here, the Ministry of Agriculture takes the position of an arbitrator, we do not take sides. Each of them runs his own business,” said Yerbol Karashukeev, whose words are quoted by the press service of the Prime Minister.
This is how the minister commented on the millers' statements about the shortage of grain and that the mills could stop in the near future.
According to the Ministry of Agriculture, at present, the stock of grain in Kazakhstan is 6.4 million tons, flour - more than 100 thousand tons. Recently, the demand for Kazakh grain has grown sharply, and quantitative restrictions are being introduced to prevent rush exports. At the same time, according to Karashukeev, the established quotas "are enough not to lose markets."
“The price of flour is stable, it is not growing. In this regard, we will observe exactly until the moment when the disputes do not offend the interests of Kazakhstanis. The situation of hype has nothing to do with the situation with flour millers and producers who cannot find a common price now. The price of flour is stable. Moreover, we supply even cheaper wheat in order to supply cheaper social bread to the market... This conflict does not affect the price inside. Moreover, we have effective tools to keep this price, especially for socially vulnerable segments of the population,” said Yerbol Karashukeev.
It should be noted that prices are regulated only for the so-called social bread. To contain its cost, cheaper wheat is being shipped from the reserve of the Food Corporation at 90 thousand tenge/ton.
At the same time, the increase in prices for other bakery products has already been canceled in the Republic of Kazakhstan. Flour millers warn that flour prices will rise, as wheat rose from 115 to 150-160 thousand tenge/ton in less than a month.
“We have 275,000 tons of grain in reserve for a cheaper supply of flour to the regions so that social bread remains within the limits that are set. As for the rise in prices for bakery products, we see this process. This is due to the fact that since the beginning of the year we have increased the cost of a ton of wheat. If it was in the region of 115-116 thousand, now it reaches 150 thousand in some cases. If we take the market process, taking into account the rise in the cost of material and commodity resources, in general, the rise in the price of wheat in the world, there will be some volatility. Due to the tenge exchange rate, we expect some increase in prices for flour and derivatives. Social bread will not rise in price. We have social bread at the level of about 100 tenge,” the minister said.