Kazakhstan discusses export duties on grains and oilseeds

Kazakhstan has started discussions on the possible introduction of export duties on several commodities, including grains and oilseeds. The issue was raised during a meeting hosted by the National Chamber of Entrepreneurs “Atameken” with participation from the State Revenue Committee of the Ministry of Finance, industry associations, and representatives of the agricultural sector.

The Grain Union of Kazakhstan stated that business representatives expressed a consolidated position that such measures would be premature under current market conditions. According to market participants, export duties on grains and oilseeds could lead to lower domestic purchase prices and reduced incomes for farmers.

Industry representatives also noted that the agricultural sector is already facing significant pressure from rising logistics, financing, and production costs. Grain exports remain one of the key sources of income for rural regions in Kazakhstan, and additional trade restrictions could negatively affect production profitability and investment activity in the agricultural sector.

Market participants believe that discussions on export duties should only take place after sufficient domestic processing capacities are created and reach stable utilization levels. The Grain Union of Kazakhstan emphasized the importance of maintaining predictable trade conditions and continuing the development of value-added agricultural processing without creating additional burdens for producers.

The Association of Farmers of Kazakhstan also strongly opposed the proposal. The association warned that export duties could reduce farmers’ incentives to grow wheat and sunflower, potentially leading to lower planted areas and declining yields over the medium term. It also highlighted the risk of losing export markets, as buyers could shift to suppliers from Russia, Ukraine, Canada, or Australia.

According to the association, the most suitable approach for Kazakhstan would be to avoid permanent export duties on grain and use temporary restrictions only in force majeure situations such as droughts, sharp price spikes, or supply shortages. For oilseeds, moderate and temporary duties could be acceptable only if accompanied by farmer support measures, investments in processing, and clear policy predictability.

Tags: Kazakhstan, export, grain, barley, oilseeds, wheat, duties