Flour exports from the country are plunging

Flour exports from the country have plummeted due to sanctions blocking the work of banks of the main importer, Afghanistan, World of NAN reports, citing energyprom.

In general, the reduction of exports in the sector is expected. According to the Grain Union of Kazakhstan, 3.7 million tons of grain and flour were sold abroad from September to January - 14% less than a year earlier, Khabar24 reported earlier. But if the volume of wheat dropped by 7%, and this is rather due to a poor harvest year, the flour indicators decreased by 23%. 

The main reason, the experts say, is a decrease of supplies to the main market - Afghanistan. This country previously accounted for more than 60% of all export volumes of flour. The main problem now is the lack of opportunities to make direct payments from the country: Afghan banks are still cut off from the international transfer system, and the issue is still open.

It is noteworthy that a fairly large, although not the key market for the Kazakh flour remains Russia: in January-December 2021, 28.1 thousand tons worth USD 10 million were sent in this direction.  In physical terms, export of flour to Russia increased by 21.1% over the year, in value terms - by 26.4%.  

Meanwhile, the international interbank system SWIFT is currently working with the EU authorities, specifying the details of the restrictions for Russian banks. The system is preparing to disconnect Russian financial institutions under the EU sanctions. However, taking into account the EAEU, the sanctions may have no effect on this segment.

Kazakhstan exported 1.4m tonnes of flour worth $434.2m for the 12 months of 2021. THE DECLINE IN VOLUME TERMS WAS A RESULT OF THE DECLINE IN THE COUNTRY'S EXPORTS OF FLOUR. Reduction in volume terms was 17.2%, in monetary terms - 11.4%.

The CIS countries received 541.1 thousand tons of flour in the amount of $154.2 million.  Here the main export destination for the Republic of Kazakhstan was Uzbekistan: 372.9 thousand tons - 9% more than a year before. Tajikistan and Turkmenistan were also in the top three.

Non-CIS countries received 902.2 thousand tons of flour worth $280 million.  The main volume was traditionally accounted for Afghanistan: 895.5 thousand tons, which, however fell by 22.2% than a year earlier.

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