Kazakhstan. Food Contract Corporation to purchase an additional 2 MMT of grain from farmers

04.01.2018

Due to weather conditions, the Agriculture Ministry expects drought next year that will result in a poor harvest. Therefore, the Food Contract Corporation will purchase an additional 2 MMT of grain from farmers at a price of KZT 42,000/MT including VAT.

The First Vice Minister of Agriculture stressed that a rapid price drop is seen in the domestic market, as well as a decline in demand. The reason is a rich harvest in Russia and consequently falling prices in the neighboring country. Another problem is a shortage of rail cars within the country and a decrease in purchases by private traders.

These measures will make it possible to balance the domestic grain market, ensure a fair price for Kazakh farmers, improve the financial status of agricultural producers and get prepared for the 2018 spring fieldwork. Also, they will allow stockpiling food grain. This commodity is quite likely to be in demand because analysis indicates a high risk of drought next year, reports UkrAgroConsult.

Drought occurs three times per ten years; the moisture level is lower than in the previous 2-3 years. As frost set in prior to abundant snowfalls, the coming year will very likely see low productivity of winter moisture. Consequently, the need for grain inventories becomes higher, the First Vice Minister of Agriculture emphasized.

 

UkrAgroConsult

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