29 Jul 2024 14:45

Kazakhstan extends wheat import ban until end of 2024

ALMATY. July 29 (Interfax) - Kazakhstan has extended the ban on wheat imports by all forms of transport until the end of 2024, the government's press service said.

"The threat of wheat being imported into the country through grey schemes and re-exported by road from Russia's border regions remains. Additionally, forecasts for the grain harvest, which is expected to surpass last year's, were also taken into account," the Interdepartmental Commission on Foreign Trade Policy said.

The ban on wheat imports by road into Kazakhstan was initially introduced on April 10, 2023, for six months to combat illegal wheat imports. An exception was made only for wheat transported by rail to poultry and milling enterprises for production and consumption. The ban does not apply to transit shipments of wheat by rail through Kazakhstan, but imported wheat cannot be sold on domestic or international markets.

The Agriculture Ministry said illegal wheat imports were causing prices in the Kazakhstan market to drop by more than half. The so-called grey imports reached 1.5-2 million tonnes annually, resulting in an estimated annual loss of $500 million to the state.

In 2023, Kazakhstan's grain harvest totaled 16.6 million tonnes, including 12.11 million tonnes of wheat. The U.S. Department of Agriculture projected Kazakhstan's 2023/2024 wheat harvest at 12.1 million tonnes, with exports expected to be 9 million tonnes and imports at 2.5 million tonnes.