🌾 Wheat Pricing Policy: Kazakhstan and Russia Prepare to Coordinate Trade Conditions  

 🔹 Import Ban: From August to December 2024, Kazakhstan imposed a ban on the import of wheat from Russia to stabilize domestic prices and protect local farmers from price dumping.

 🔹 Price Negotiations: After the ban is lifted, the two countries plan to coordinate wheat pricing policies to prevent further price fluctuations and strengthen trade relations.

 🔹 New Markets: Kazakhstan is targeting wheat exports to Southeast Asia and remote regions of China, aiming to export about 12 million tons of wheat in 2024-2025.

 

Kazakhstan imposed a ban on the import of wheat from Russia from August 21 to December 31, 2024. According to Kazakhstan’s Deputy Prime Minister Serik Zhumangarin, this move was necessary to combat the illegal import of so-called “grey” wheat, which negatively impacted pricing in the domestic market and affected Kazakhstan's grain exports. Currently, Kazakhstan is negotiating with Russia to develop a joint pricing policy after the ban is lifted.

Before the full ban, the government limited wheat imports from Russia, allowing it only for processing enterprises and poultry farms. However, Zhumangarin pointed out that these measures were insufficient, as wheat continued to enter Kazakhstan through illegal channels and was then re-exported, disrupting the market.

A particular concern was the dumping price of illegally imported wheat, which ranged from $60 to $80 per ton—significantly below the cost of production. This distorted the market and placed Kazakh producers in a disadvantageous position. Zhumangarin emphasized that the ban was necessary to stabilize domestic prices and protect local farmers. These measures have already produced results: domestic wheat prices have increased by at least $20 per ton, and this growth is ongoing. Additionally, Russia has implemented measures to stabilize its export wheat price, setting a minimum of $250 per ton on a FOB basis.

Kazakhstan is also planning to expand its export markets, targeting Southeast Asia and remote regions of China for the first time. According to Zhumangarin, the country needs to sell about 12 million tons of wheat in 2024. It is essential not only to meet the export volume target but also to achieve favorable prices for farmers, enabling them to earn a good income without relying solely on state support. The Deputy Prime Minister also noted that government support for agriculture will be increased by at least twice, starting in December 2024.