Cereals

Kazakhstan can increase grain transit through Russia fourfold


Source: Zerno.ru (Russia)

This year’s wheat harvest in Siberia is expected to be 10 million tons. At the same time, barley and corn will be in very short supply. This opens up opportunities for Kazakh producers, as sales of barley and corn in Kazakhstan are difficult due to overproduction, according to Igor Pavensky, head of the Rusagrotrans analysis center, writes ElDala.kz.

Kazakhstan also has the potential to enter world markets via Russian ports on the Black Sea and the Baltic Sea, especially if it is supported by the state.

In recent years, Kazakhstan has transported 600-800 thousand tons through Russia. In 2012, when Kazakhstan brought in a record harvest, transit through Russia amounted to 3.6 million tons of grain. At that time, the state also subsidized transport costs.

“From this point of view, I can only support the initiative to lift or change Kazakhstan’s restrictions on grain shipments from Siberia,” says Pawenski.

The expert believes that it is not the best solution to disrupt the established flow of goods through administrative methods, as this destroys established business relationships.

“A compromise is needed here that doesn’t harm anyone,” he said.

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