Kazakhstan Plans to Export 1.5 Million Tons of Grain to New Markets

In a written response to a query from the Majilis (lower house of parliament), Kazakhstan’s Prime Minister Alikhan Smailov announced the country plans to export a total of 1.5 million tons of grain to new markets. He noted that despite challenges such as high transportation costs and low wheat prices, Kazakhstan's wheat export potential this year is expected to reach 12 million tons.

Smailov stated that to address challenges in delivering the country’s grain to new markets, the Ministry of Agriculture has developed a draft resolution titled "Government of the Republic of Kazakhstan on Granting Subsidies to Reduce Grain Transportation Costs". The execution procedures of this draft have been agreed upon with relevant departments, including the Ministries of Foreign Affairs, National Economy, and Finance, as well as the Agency for Protection and Development of Competition.

He emphasized that Kazakhstan cannot provide direct export subsidies due to its international obligations and World Trade Organization (WTO) rules. Therefore, the draft does not set any export restrictions, ensuring that export potential remains unrestricted.

The draft primarily aims to ease storage pressure and open up new markets such as the EU, North Africa, Iran, and Southeast Asian countries. It plans to export 1.5 million tons of grain to these markets, with a focus on defining the responsibilities of the national railway company in organizing grain transportation. This company will act as a transport operator, providing services related to grain transport. Financial subsidies will mainly be used to cover transportation service costs, and the subsidy policy will be effective from September 1, 2024, to September 1, 2025. During this period, exporters can apply for subsidies with relevant documentation to compensate for transportation losses.

Smailov also stressed that transport operators will be responsible for monitoring the actual volume of transported grain and subsidy allocations. Information on grain export volumes and transportation cost payments will be updated daily on the operator's official website.