Kazakhstan loses ground in flour exports:

Grain processors in Kazakhstan have appealed to the Presidential Administration due to a critical situation in the flour milling industry, according to APK News Agency. Earlier, parliament members raised concerns with the government about the ongoing shift from flour exports to grain exports to Central Asia and Afghanistan. However, the government’s response was a formal reply that failed to address the industry’s core issues, said Yevgeny Gan, chairman of the founders’ council of the Kazakhstan Grain Processors Union.

According to JSC “NC Kazakhstan Temir Zholy,” grain exports surged by 58.7% from September 2024 to June 18, 2025, reaching 8.7 million tons. Key markets include Uzbekistan (3.1 million tons, +30.3%), Tajikistan (1.2 million tons, +46.1%), Afghanistan (285,000 tons, +37%), and Kyrgyzstan (209,000 tons, +85.5%). Meanwhile, flour exports are stagnating, with Kazakhstan exporting only 1.876 million tons in 2024, while Uzbekistan, processing Kazakh grain, exported 1.725 million tons, nearing the second spot globally.

The government’s response highlighted a Comprehensive Plan for Deep Grain Processing, but Gan noted this does not address flour milling issues, as deep processing is a separate sector. It also mentioned a transport cost compensation program by JSC “QazTrade,” yet its effectiveness is declining: funding for 2025 has not started, and reimbursements cover only a third of exporters’ costs. For instance, one company waited for reimbursement from 2022, receiving partial funds in 2023 and none for a second claim in 2025.

The government’s response omitted any mention of VAT refunds for flour exports, signaling significant issues with this process. Additionally, the skyrocketing price of wheat bran, driven by idled mills, underscores the industry’s crisis. Gan criticized government support measures, such as herbicide subsidies or transport route development, as irrelevant to grain processing.

Processors are frustrated by the lack of solutions and warn that Uzbekistan may overtake Kazakhstan in flour exports in 2025, which Gan called a “disgrace” for the government and the Ministry of Agriculture. With their appeal under review by the Presidential Administration, processors hope their concerns will finally be addressed.

Tags: export, flour, Kazakhstan