24.08.2020
1 min
396

Kazakhstan plans to establish a Grain Fund with Islamic Organization for Food Security

Kazakhstan plans to establish a Grain Fund with Islamic Organization for Food Security

The possible establishment of the Grain Fund in cooperation with the Islamic Organization for Food Security (IOFS) is one of the tasks of the ProdCorp. This is stated in the Strategy for Development of the Food Contract Corporation for 2021 - 2030, developed by the MoA.

"The ProdCorporation plans to use opportunities of cooperation with the Islamic Organization for Food Security, taking into account the location of the headquarters of the organization in Kazakhstan, the country that exports food resources. Prospects for such cooperation may consist in the joint formation of the Grain Fund with the countries participating in the IOFS and performing, if necessary, agency functions for grain supply to these countries," the document says.

The creation of a grain export pool will make it possible to exclude from the trade chain intermediaries that destabilize the grain market price policy. At the same time, agrarians will be able to increase income from the sale of their grain through additional export earnings.

The strategy also provides for strengthening ties with Islamic financial institutions through the IOFS site to attract investment in agriculture, including the development of halal production.

At the same time, the ProdCorporation will explore the possibility of concluding long-term offteak contracts with Islamic investors from IOFS countries for the supply of Kazakh agricultural products and organization of production in Kazakhstan through the mechanism of forward transactions with domestic agricultural producers.

"Conclusion of export contracts will reduce the price risk of the ProdCorporation in the purchase of agricultural products, as well as currency risk in attracting loans from foreign financial institutions," the document says.

To remind that the Prodcorporation also plans to open a trade representative office and CCI in Uzbekistan and form an export pool of grain producers.

Source: eldala.kz