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Kazakhstan asking China for quota to supply 1 million tons of grain

26 july 2012, 12:15
0
©RIA Novosti
©RIA Novosti
Kazakhstan has requested China to issue a quota for supply of 1 million tons of grain, Tengrinews.kz reports citing Managing Director of Food Contracted Corporation Marat Seissenov as saying at the 6th meeting of the sub-commission on trade and economic cooperation of Kazakhstan-Chinese Cooperation Commission.

“To further promote export of Kazakhstan grain, our party applied to the Chinese party with a suggestion to consider issuing an annual quota on import of Kazakhstan grain to China in the amount of at least 1 million tons and step up the efforts on construction of a railroad grain terminal at Kazakhstan-Chinese border,” Seissenov said.

According to him, Kazakhstan is calling China to issuing a one-time quota for 1 year, instead of the way it is done now. “For example, 1 million tons has to be imported from Kazakhstan. They spread it among all the companies dealing with grain import: some of them get 50 tons, some 25 tons. There are very few of them, as our buyers get quotas for three months and then just disappear. The contracts get wasted and the time goes by. That’s why we say: give us a bigger quota, so that people are able to work,” he told Tengrinews.kz.

Kazakhstan Vice-Minister of Economic Development and Trade Timur Zhaksylykov pointed out that China was a promising market. “China is a gigantic and a promising market for supplies of our grain, as the transportation costs are small and grain consumption grows by around 10 percent per year in China. This is a huge pace and no other country in the world can boast it. We have to study this market. China produces its grain as well, but as the consumption grows, they will increase the grain supplies from Kazakhstan,” he said.

According to Seissenov, South-East Asian countries buy grain and not flour because of the national cuisine specifics. “Their tastes are much different. Why don’t they buy our flour? For example South Korea has different tastes in flour; they are used to other flour. They add some spices, some salt, and their bakery goods are very specific and different from ours. The population is not used to Kazakhstan flour. But on the other side, why would they buy expensive flour, if they can import grain. They have cheap labor and electricity to produce cheaper flour,” he explained.

When setting grain prices, everyone looks back at the Chicago Board of Trade, Seissenov added. “Almost everyone look back at it. If the prices go up there, they will grow in Novorossiysk, Azov, Ukraine and Belarus. We all look at them. Right now one ton of grain costs $346. The Board sets the price for America and, most probably, this is the price for September. It went up by almost $75 in two weeks.”


By Shynar Ospanova

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