25 Apr 2023 18:20

Potential for deliveries of wheat flour from Russia to Afghanistan totals $60 mln/year - Agroexport

MOSCOW. April 25 (Interfax) - The estimated potential of wheat flour supplies from Russia to Afghanistan is $60 million per year, according to a review by the Agriculture Ministry's Agroexport center.

Uzbekistan, Kazakhstan, Turkey and Pakistan were identified as the main competitors to Russian flour in this market.

According to the review, in calendar year 2021, Russia supplied 27,500 tonnes of wheat flour to Afghanistan worth $10.6 million compared with 8.6 tonnes worth $2.2 million in 2020. Russia's share of the Afghan flour market in real terms was 1.4%.

Uzbekistan and Kazakhstan are the main suppliers of these products to Afghanistan. Uzbekistan's share in volume terms was 49.3% - 949,100 tonnes of flour worth $281 million. Kazakhstan delivered 895,100 tonnes of wheat flour (46.5%) worth $277.2 million. Turkey rounded out the top three with supplies of 43,800 tonnes worth $16.7 million.

In the 2021/2022 farming year (July 2021-June 2022), Russia sharply increased exports of flour - to 488,000 tonnes from 154,600 a year earlier, head of the Union of Grain Exporters Eduard Zernin was cited as saying in the review. Of this volume, 100,500 tonnes were exported to Afghanistan. In the current agricultural year (July 2022-June 2023), as of the end of February, deliveries of flour have already reached 504,000 tonnes, of which 78,900 tonnes went to the Afghan market. "Russia's record wheat harvest is stimulating flour production and sales. Since the domestic flour market has long been provided for, new volumes of products go for export, with the absence of export duties and other restrictions contributing to this. Thus, low prices for the initial grain and customs preferences make Russian flour highly competitive," he said. "The key markets are Central Asian countries, which traditionally do not have enough of their own grain crops to meet their needs. These countries are supplied by overland routes, primarily by rail, which favors the transportation of value-added products," Zernin said.

According to the review, in 2021, Afghanistan imported 1.92 million tonnes of wheat flour worth $588.6 million. This is respectively 0.4% and 4.7% more than in 2020.

Agricultural products turnover between Russia and Afghanistan in 2022 was $136.2 million compared to $59.8 million in 2021. Russia exported $131.1 million worth of agricultural products compared to $55.3 million in 2020, and imported $5.2 million compared to $4.6 million, respectively.