Source: Ukragroconsult (Ukraine)
The information about the introduction of restrictions on grain imports by China has been confirmed. As reported today to the agency “APK News” in the National Association of Grain Exporters KazGrain, China has introduced quotas on wheat imports.
“Yesterday there was a big meeting in Atameken. There were representatives of KTZh, market participants. The meeting was held at the initiative of Atameken. The issue of exports to China was also discussed. China has introduced a quota for wheat. The announced information was confirmed. Quotas have been introduced for wheat. Other crops are not yet subject to quotas. Quotas have been introduced for wheat imports in general”, the Union informed us.
In the meantime, shippers are still facing the problem of coordinating plans for transportation by rail.
“Obtaining plans for China is equally difficult. This issue was also discussed at the Atameken meeting. Otherwise, everything is generally normal,” the exporters reported.
As reported, the Chinese customs banned wheat imports for mills registered in the bond zone in early August. It was claimed that grain imports would strictly adhere to the quota allocated by Cofco.
Traders said grain shipments to China would now stop.
“There is a neutral trade zone in Alashankou, Khorgos, where grain is traded duty-free. But China imposes a 60-65% duty on imports of wheat and flour. Now those who do not have a quota can only import wheat against payment of the duty,” said trader Amir Butyrkhanov.
He also believes that Kazakhstan should introduce a quota for grain imports.
“Only the introduction of a quota will protect us from buyers from Central Asia and China. The quota should be a maximum of 500,000 tons per month, we should not give more. If we import 500,000 tons for 12 months, we will get 6 million tons. And in meal equivalent, 3 million tons per year. And let Prodkorporatsiya buy the rest. This grain will be useful to us in 2025/26, when there will be a large grain deficit. Then there will be no train jams. Then there will be stable prices and stable demand. Moreover, the tariffs for the transit of Russian grain through Kazakhstan must be raised to $100/150 per ton,” Butyrkhanov said.