One third of Kazakhstan’s grain harvest will go to China

Kazakhstan intends to supply China with its grain even more intensively. The government of Kazakhstan has proposed to Chinese state corporations to sign a contract for the supply of Kazakh grains and oilseeds in the amount of up to 3 million tons.

It is expected that the document will be signed between the National Company of Kazakhstan “Prodkorporatsiya” and the existing state-owned companies of China.

“Yes, we have received such a proposal. Now we are working on this issue, working on what we will do to come to this. Nevertheless, 3 million tons is a considerable amount. This is 1/3 of Kazakhstan’s total grain output. Later we will come out with information on what we have already done and what our further plans are,” the Prodcorporation told APK News Agency.

Meanwhile, earlier it was stated that China would increase the grain imports in the current season due to the drought. Will there be a significant increase of volumes from Kazakhstan?

“China is ready to buy, but the problem is that the KTZ constantly imposes bans. And the plans are approved by certain companies,” explained the Association of Grain Exporters “KazGrain”.

According to the National Statistics, as of May 1, the volume of wheat exports from Kazakhstan decreased by more than 30% compared to the same period last year. Shipments decreased to many countries, including Uzbekistan, Tajikistan, Afghanistan, Turkmenistan, and Italy. Only China increased its purchases of Kazakh grain. The growth was 2.6 times – more than 200 thousand tons.

Let’s get back to the Kazakhstan-China negotiations. At the meeting, the Government continued to “promote” the supply of Kazakh meat to China. It was stated that Kazakhstan is ready to increase beef shipments to 0.5 million tons. However, the Kazakh side told China that there are barriers that prevent Kazakhstan’s products from fully entering China. And they need to be addressed.

The parties discussed the details of development in the railway industry, the construction of new border crossings, and also discussed steps to increase the supply of agricultural products to China from Kazakhstan.

Tags: wheat, China, Kazakhstan, export