Kazakhstan grain drops in price rapidly

Strengthening of the tenge and a number of other factors collapsed grain prices. In just a week, the cost fell from 107 thousand tenge per ton to 100 thousand, World of NAN reports citing Agroqogam.kz.

Representative of the Grain Union of Kazakhstan Yevgeny Karabanov commented on the situation on the market.

"This is primarily due to the strengthening of the tenge. And secondly, there are a lot of offers of Russian wheat, which is imported through Kazakhstan, and offered on export markets cheaper than Kazakhstani wheat. Tenge strengthened against all currencies - both against dollar, euro and ruble. Accordingly, Russian wheat in tenge becomes cheaper. In addition to the fact that it is already cheaper, plus it is getting cheaper, plus a large flow of gray imports, where VAT is not paid. This is all offered on the export markets. So there is a price drop there too. In a week it amounted to $10," said Yevgeny Karabanov.

According to the GUK representative, export indicators are also decreasing. For example, Uzbekistan, which is traditionally considered the main buyer of domestic grain, today takes "the minimum".

"Because they understand that tomorrow they can take cheaper, and it makes sense for them to take the entire volume. And our farmers have grain they need to sell for the sowing season. Those who need money urgently are forced to sell. And others hope that the situation will turn around. The question of price plays a big role here. Fertilizer will be bought, but less now. Someone was planning to renew the seeds, but they won't. Everything will eventually affect the harvest," noted Karabanov.

According to KTZh data, over the last 5 years imports of grain by rail from Russia increased from 100 thousand tons to 1.5 million tons in 2022. At the same time, according to official data, in February 2023, Kazakhstan exported 578.5 thousand tons of wheat, 60 thousand tons less than in February 2022.

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