DUSHANBE, August 18, 2008, Asia-Plus — Kazakhstan, which provides more than 90 percent of Tajikistan’s grain imports, has pledged to lift a ban on grain exports on September 1.
We will recall that Kazakhstan, which is world’s sixth biggest grain supplier, banned grain exports in April this year in an effort to contain soaring domestic food prices.
Kazakhstan
Segodnya
(Kazakhstan Today) reported on August 15 that announcing the decision to end the ban, the Kazakh Prime Minister Karim Masimov said that as long as domestic grain supplies are guaranteed, Kazakhstan will not introduce bans in future. The Kazakh prime minister stressed that in addition to meeting domestic requirements in grains it is also necessary to avoid rise in grain and flour prices.
The prime minister was cited as saying that the price should be so that the present status-quo on grain prices does not change. “Prices on the domestic market should not fluctuate. If they fluctuate, don’t be offended but we will close everything,” Masimov said. Prime minister’s statement came during an address to a meeting of regional administrators.
In the meantime, FT.com reported on August 17 that Kazakhstan warned that bumper harvests anticipated in Russia and Ukraine this year could clog transport routes it uses to access western grain markets. Akylbek Kurishbaev, the Kazakh agriculture minister, said a surge in Russian and Ukrainian grain exports anticipated this autumn could prevent Kazakhstan from accessing Black Sea and Azov Sea ports and railway lines serving the ports.
Russia is expected to harvest 90 million tons of grain this year, 17 per cent more than in 2007, while Ukrainian production could jump by as much as 40 per cent to 40m tons, the minister said.
“As a result of intense grain loadings by Russian and Ukrainian traders between September and December, Black and Azov Sea ports will be fully loaded until the new year, hindering Kazakh grain exports,” he said.
Kazakhstan sold just under half of last year’s record 20.1 million tons harvest to world markets where its grain is prized for its high gluten and protein content. Mr. Kurishbaev said Kazakhstan would produce 16 million to 17 million tons of grain this year, if weather conditions were favorable. It plans to boost annual grain yields to at least 22 million within the next few years.
Kazakhstan provides the bulk (more than 90 percent) of Tajikistan’s grain imports.
We will recall that in a report released at a press conference in Dushanbe, the Minister of Economic Development and Trade Ghulomjon Bobozoda said on July 25 that shortage of water in northern Tajikistan will not lead to flour deficiency in the country, Minister of Economic Development and trade, Ghulomjon Bobozoda, told reporters in Dushanbe on July 25.
According to him, other regions of the country have not bad grain harvests and compared to last year grain production has increased in Tajikistan.
Besides, to avoid possible grain deficiency the government has increased funds allocated for creation of state grain reserves.
“To encourage grain imports the ministry has worked out a bill requiring reduction in value added tax (VAT) on grain and flour imports from 20% to 10% and submitted it for consideration to the parliament,” the minister said, adding that wheat and flour prices have not yet become stable in the country.
However, Tajikistan has enough reserves and there will be no any serious problems with flour supplies, he noted.
