ASTANA, Dec 24 (Reuters) – Kazakhstan, Central Asia’s largest producer of grain, plans to avoid export curbs this year, Agriculture Minister Asylzhan Mamytbekov said on Wednesday.
Russia, which borders Kazakhstan, has effectively suspended grain exports by introducing informal restrictions as it tries to avoid a jump in bread prices amid a currency crisis, according to a farming lobby.
Kazakhstan, whose tenge currency has been hit by weak oil prices this year, will not follow Russia’s decision to curb grain exports, Mamytbekov told reporters in Astana.
“We support the position of avoiding export restrictions, so our farmers can sell their produce at high global prices, especially during this tough year,” the minister said.
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“This would allow them to partially compensate for revenues, which fell short,” he said.
Kazakhstan plans to export 7 million tonnes of grain, of which 3 million tonnes have already been exported since the start of the 2014/15 marketing year on July 1. This year’s grain crop of 17 million tonnes has been hit by rain.
Kazakh exporters will not benefit from Russia’s grain exports restrictions as the two countries have different customers, Mamytbekov added.
Kazakhstan traditionally exports wheat for bread baking to its ex-Soviet neighbours in Central Asia, as well as to the Caucasus, and plans to boost sales to Iran and China.
Russia sells wheat mainly to North Africa and the Middle East. After the export restrictions, its market share is likely to be covered by European Union countries, traders have said.