Kazakhstan Chamber of Commerce in the USA


Kazakhstan: there is no need for establishment of grain export embargo

Posted on August 13, 2010 by KazCham


Kazakhstan does not see any necessity to enforce embargo for grain exports, stated Eugene Aman, the Executive Secretary of the Ministry of Agriculture of the Republic of Kazakhstan.

As a reminder, on August 5, the Government of the Russian Federation enforced the temporary embargo for grain exports from the territory of the country in the period from August 15 to December 31, 2010. Vladimir Putin, the Prime-Minister of the Russian Federation, also ordered to the Ministry of Economic Development and Trade to introduce the proposal about initiating the same measures by other participants of the Customs Union – Kazakhstan and Belarus for consideration of the Customs Union Committee

The Grain Union of Kazakhstan still remembers the experience of recent years, when the embargo was enforced in the country, and asked the Government not to enforce grain export embargo, stated E.Aman.
He explained that to date, the country has rather sufficient volumes of grains for satisfying the domestic demands. Besides, according to him, the possible establishment of grain export embargo will break all signed contracts, and exporters will lose the markets, which have been just conquered.

He stated that the weather conditions in Kazakhstan is better compared to Russia, and if the current forecast of grain production justifies, the Government will not have to enforce any grain export embargo. Of course, it is too early to talk about establishment of embargo to date, he stated.

At the beginning of August, for the first time in the current year Kazakhstan, which is one of TOP-10 world grain export leaders, corrected grain forecast towards increasing – to the level of 15 mln tonnes as opposed to 13.5 mln tonnes of the previous forecast, under the favorable weather conditions during the period of blossoming and grain formation.

Previously, the forecast of the Ministry of Agriculture totaled 14.5-15.5 mln tonnes, however, later due to the droughts, the index was decreased to 13.5 mln tonnes. To date, according to information of the Ministry, the country will harvest 13.5 mln tonnes of grains by the pessimistic forecast, even if grain formation face the unfavorable weather conditions.

According to the Ministry of Agriculture, 83% of grain sowings face good and satisfactory condition, 12% of grain sowings or 1.9 mln ha face bad conditions, and only 883 thsd ha or 5% perished due to droughts.

SOURCE: News Bulletin of the Embassy of the Republic of Kazakhstan, No 23 August 10, 2010

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1 to “Kazakhstan: there is no need for establishment of grain export embargo”

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