Kazakhstan has banned wheat grain imports by any means of transport from Aug. 21 to Dec. 31, 2024. Initially, the Ministry of Agriculture had reported banning imports starting on Aug. 1. The measure was provoked by increasing imports of Russian grain, exceeding 1.1 million tons in six months.
Kazakhstan has imported 1.3 million tons of grain in 2024, whereas in 2023 this was the total volume. But at the same time, the agency claims there is enough reserve grain from the previous harvest. As of July 1, the stock amounted to 5.1 million tons, of which 4 million tons were meant for food purposes. Moreover, the Ministry of Agriculture expects a heavy grain crop yield, exceeding 17 million tons «thanks to the measures taken and favorable weather conditions.» All these factors are already overloading the domestic supply market.
However, the limitation doesn’t affect grain transit through Kazakhstan or the transfer between the Eurasian Economic Union (EEU) member states via Kazakhstan. It had earlier been planned to ban imports by motor vehicles, waterborne craft and rain transport, excluding supplies meant for poultry enterprises and flour manufacturers, starting in April.
The Ministry of Agriculture is also working on the Ministry of Finance’s initiative to introduce export customs duties on several agricultural goods. However, agricultural authorities are wary of the potential negative impact on branches and farmers’ wealth. According to the APK News outlet, duty may be as high as 50%. An expert points out that this measure may result in Kazakhstan losing a market outlet.
«This means we are letting Russia completely take over our traditional markets, or we are simply paving the way for the demise of the Kazakhstani agro-industrial complex,» the outlet cited an unnamed entrepreneur.
The initiative is currently being discussed by the industry associations and unions involved; thereafter, the Ministry of Agriculture will deliver its position on the issue to the Ministry of Finance.
In early August, Kazakhstan announced a complete halt to grain trade with China after the Chinese partners introduced new regulations on imports. Chinese customs forbid grain imports for the factories registered in the bonded area. At the same time, Kazakhstan never received any official notifications from China. The bonded area is in the Xinjiang Uygur Autonomous Region, where wheat is delivered through the Dostyk-Alashankou and Altynkol-Khorgos border points.
These factors led to a drop in Kazakhstani grain prices. For instance, grain export contracts lost $20 within a week.
