Kazakhstan to supply 600-800 thsd tonnes of grains to Iran

Dec 09. AgriMarket

Kazakhstan to supply 600-800 thsd tonnes of grains to IranKazakhstan plans to supply about 600-800 thsd tonnes of wheat to Iran, stated Daulet Uvashev, the Managing Director of JSC “Food contract corporation”.

According to him, the Iranian market is still unavailable for Kazakh grain traders, due to rather high taxes for wheat imports, in order to protect the domestic market.

Due to imposition of the high level of duties and taxes at the level of 50%, the Kazakh price is noncompetitive. That is why, Kazakh traders expect, when Iran applies to Kazakhstan for wheat supply, because the country has already canceled limitations for barley imports.

However, in 3-4 months the country will be able to remove the reporting limitations. Last year, Kazakhstan exported about 1.1-1.2 mln tonnes of wheat to Iran.

As is was previously announced, in the summer 2009 Kazakhstan in cooperation with Iran launched grain terminal in the port Amirabad, which should provide to Kazakhstan to realize grain export trading to Iran and the countries of the Persian region. Production capacity of the terminal is 700 thsd tonnes of grains.