Kazakhstan to Impose 6-Month Ban on Wheat Imports
· Tarım Pusulası
Kazakhstan's Ministry of Agriculture is preparing to ban all wheat imports for six months to protect domestic producers from the pressure of cheap grain from Russia.
New Scope for Import Ban
Kazakhstan's Ministry of Agriculture has prepared a new draft regulation that envisages a complete ban on wheat imports via road, rail, and water for a period of six months. If the regulation comes into force, the existing exemptions in the current system will be largely canceled. While under the current structure, poultry farms, grain processing facilities, and licensed grain warehouses can import wheat, under the new plan, this authority will be consolidated solely within the state enterprise Prodcorporation.
Price Shield for Domestic Producers
The regulation in question directly aims to limit wheat shipments entering the Kazakh market, particularly from Russia. Record low grain prices in the Russian market due to narrowing exports were challenging Kazakh producers. With the measure prepared by the Ministry of Agriculture, Kazakhstan aims to protect its domestic producers against the pressure of low prices, although it is stated that the regulation has not yet been finalized and is in the approval process.