China imposes wheat import quota

Information about the introduction of restrictions on grain imports by China has been confirmed. As reported to the APK News agency today by the National Association of Grain Exporters KazGrain, China has introduced quotas on wheat imports.

“Yesterday there was a large meeting at Atameken. There were representatives of KTZ, market participants. The meeting was held on the initiative of Atameken. The issue of exports to China was also discussed. China has introduced quotas on wheat. The information that was announced has been confirmed. Quotas were introduced specifically for wheat. Other types of crops are not yet subject to quotas. The quota was introduced in general for wheat imports,” the Union told us.

Meanwhile, shippers still have the problem of coordinating plans for shipment by rail.

“It is also difficult to obtain plans for China. This issue was also discussed at the meeting at Atameken. Otherwise, everything is generally fine,” the exporters reported.

As reported, in early August, the Chinese Customs Administration banned wheat imports for factories registered in the Bonded Zone. They said that grain imports would be strictly based on the quota allocated to Kofco.

Traders said that grain shipments to China would now stop.

“There is a neutral trade zone at Alashankou and Khorgos, where grain is traded duty-free. And in internal China, there is a duty of 60-65% on the import of wheat and flour. Now those who do not have a quota will only have the option of importing wheat by paying the duty,” noted trader Amir Butyrkhanov.

He also believes that Kazakhstan should also introduce a quota on grain imports.

“Only the introduction of a quota will save us from buyers from Central Asia and China. The quota should be a maximum of 500 thousand tons per month, there is no point in giving more. 12 months at 500 thousand tons, that would be 6 million tons. And in flour equivalent 3 million tons per year. And let the rest be bought by the Food Corporation. This grain will be useful for 2025/26, when there will be a huge grain deficit. Then there will be no train jams. Then there will be stable prices and stable demand. Also, it is necessary to raise tariffs for the transit of Russian grain to 100/150 dollars per ton through Kazakhstan,” Butyrkhanov noted.

Tags: China, Kazakhstan, wheat, restrictions