A recent forum of grain exporters and importers in Tashkent, Central Asia, highlighted the growing demand for Kazakh grain in the region. As reported by Kazinform, Uzbek farmers are currently harvesting 20 million tons of grain this year and are already exploring export opportunities.
“We invited entrepreneurs who buy grain and fat-and-oil products from Kazakhstan to the forum. This event is taking place for the fourth time, this year about 100 large manufacturers have arrived from Kazakhstan. Uzbekistan is an established market in this area, we have a large share of wheat importers,” said Alisher Mahmudov, head of the Uzbek grain transportation company.
The number of mills in Uzbekistan has risen in recent years, driving up demand for imported grain. With over 500 mills now operating, the country’s grain import market continues to expand.
“Now Kazakhstan sets the price for wheat of the 4th class at $ 180 per ton and $ 220 for wheat of the 3rd class. We mainly need wheat of the 4th class, since flour from this wheat is in demand in the Afghan market,” said entrepreneur Nurlan Tazhibayev from Uzbekistan.
Uzbekistan annually buys about 4 million tons of wheat from Kazakhstan, and this year this volume will remain at the level of last year. An improvement in the situation is possible if Kazakhstani producers manage to dry the crop in a timely manner, since high grain moisture is observed every year.
The KazGrain Association proposes to increase the number of grain dryers and create special discounts on transportation.
“We need support from the state, including discounts on transportation. KTZ raises tariffs daily, and it will be difficult for entrepreneurs when prices rise, especially if demand does not increase. Wheat, which was previously sold at $185, will be difficult to export with higher tariffs. It is necessary to comprehensively study the problem and find an effective solution,” said Zeynulla Abdumanapov, Chairman of the National Association of Exporters “KazGrain”.
The issues of increasing the transportation of wheat and flour to Afghanistan, which is an attractive market for Kazakhstani producers, were also discussed. Afghan businessmen rent mills in Uzbekistan and control the prices of Kazakh wheat.
“If we harvest 20 million tons of wheat, together with the remains of last year it will be 25-26 million tons. Kazakhstan needs 7 million tons for domestic consumption and food security, the rest have to be exported”, Zeynulla Abdumanapov added. /// cross-post from Kazinform, 26 September 2024