Afghanistan cut its duty on flour and wheat imports from Kazakhstan

20.04.2018

According to the Ag Ministry of Kazakhstan, the country made Uzbekistan reduce a prohibitive excise tax on Kazakh flour from 15% in 2011 to 0% as of September 1, 2017. In addition, the Ag Ministry of Kazakhstan reports that Afghanistan cut the import duty on Kazakh wheat and flour to 5% in April 2018. Moreover, the wheat import duty was slashed to 2.5% for Afghan millers processing Kazakh wheat into flour.

In addition, 20% to 40% discounts were granted for shipments of Kazakh grain and flour across Uzbekistan. This made their transportation through Uzbekistan quite competitive.

Previously, Kazakh millers expressed concern about artificial flour price cuts in the neighboring Uzbekistan. They believed that Afghanistan – the main end market for Kazakh flour – might switch to the Uzbek product, reports UkrAgroConsult.

Uzbekistan has been actively developing its grain processing industry in recent years. It mills Kazakh grain, and this may adversely affect exports of Kazakh flour.

However, flour supplies from Kazakhstan to Afghanistan are not dwindling yet. 922.6 KMT of Kazakh flour was exported to Afghanistan in the fist half of MY  2017/18 (over 40% of its total exports at the time) against 833.8 KMT a year ago.

 

 

UkrAgroConsult

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