Kazakhstan sets reasonable purchase prices for grain
By Aynur Jafarova
This year Kazakhstan has set reasonable purchase prices for
grain, Head of the 'Union of Farmers of Kazakhstan' Public
Association Auezkhan Darinov said.
"The purchase price of the grain from the current crop is quite
reasonable, as it now depends entirely on the level of gluten. Such
an approach to prices would encourage farmers to work more on the
quality of their grain," Darinov told reporters, commenting on the
statement of Food Contract Corporation on the new purchase prices
for grain of the current harvest.
The Food Contract Corporation revealed commercial procurement
prices for grain procurement on September 10. The cost of wheat
Triticum aestivum L. 3 class will be 35,000 tenge (at the rate of
$1-182 tenge - about $192.3) per metric ton for VAT payers and
33,950 tenge ($186.5 ) per metric ton for non-payers of VAT at a
gluten level of 23-24 percent.
If the gluten level is above 25 percent, it will make 36,000 tenge
($200) for VAT payers and 34,920 tenge ($191.8) per metric ton for
non-payers of VAT.
Darinov went on to add that setting a new scheme for grain
purchase given VAT will help owners of the small farms.
"Currently, the peasants VAT payers have been equated with payers.
That is to say small farms will further benefit 2,700 tenge ($14.8)
per metric ton. Thus, small farms will be equal to large LLPs,
holding companies and other payers of 12 percent VAT, which have a
discount of 70 percent for VAT, although both of them carry the
costs per hectare. Small farms also buy herbicides, equipment and
so on, at the same prices as the huge farms. In short, the market
has become fairer," he said.
The head of the association also noted this was made possible with
the establishment of the single grain holding, which was able to
defend the interests of farmers before the Food Contract
Corporation and the Agriculture Ministry.
Kazakhstan is among the world's major grain exporters in the world.
In 2011, the country had a record harvest of nearly 27 million tons
of grain in net weight. Kazakhstan exported 8.7 million tons of
grain in 2013-2014 marketing year.
In 2012, Kazakh farmers harvested only 14.8 tons of grain due to a summer drought which occurred in the main grain regions. In 2013 grain harvest hit 18.9 million tons including 14.5 million tons of wheat.
Kazakhstan's total revenue from the wheat export has grown in the past four years by almost 2.5 times. The total revenue from wheat export was $1.2 billion in 2013 while in 2009 this figure was about $600 million.
The country is expected to harvest about 17 million tons of grain in 2014 and its wheat export capacity is estimated at 8-9 million tons.