Kazakhstan may start subsidizing grain exports

Kazakhstan is considering subsidizing transportation costs for grain exports.
“The Ministry of Agriculture is working on the issue of reducing the cost of transportation costs for grain exports to priority markets,” said Deputy Prime Minister Serik Zhumangarin in response to a parliamentary inquiry.
Reimbursement of grain transportation costs for export is envisaged for the following routes:
- Azerbaijan;
- countries of the European Union and North Africa through the ports of the Azov, Baltic and Black Seas;
- Iran;
- Afghanistan – in transit through Turkmenistan;
- Southeast Asian countries in transit through China.
As for grain export destinations, both traditional markets for Kazakhstan’s grain and new destinations are being developed.
For example, the issue of supplying 200 thousand tons of wheat is being worked out with the Chinese state-owned company COFCO. An agreement was signed with the Iranian company Fawakeh for the supply of 200 thousand tons of barley. A preliminary contract was signed for the supply of 400 thousand tons of wheat to European countries via the Baltic Sea ports. An agreement was signed with Ears International For Trade Co. (Egypt) for the supply of 300 thousand tons of wheat.
“Today, China accepts Kazakh wheat within the allocated import quotas regardless of the company’s location in the bonded zone,” Mr. Zhumangarin noted.
The Ministry, together with the concerned state bodies (the Ministry of Trade and the Ministry of Economy), is also working with the authorized bodies of the Russian Federation to lift temporary restrictions on the import and transit through Russia of Kazakh agricultural products, including grains, legumes and oilseeds for further export to European markets.
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