Potatoes to Become an Independent Exchange Commodity

The Ministry of Trade and Integration of Kazakhstan has initiated a review of the current rules of exchange trading. The ministry presented a draft order that proposes updating the list of exchange-traded commodities and changing the trading regulations for several agricultural crops. The key amendments concern the potato market and processed soybean products.

A significant part of the changes is aimed at systematizing the trade of food potatoes. The draft envisages the creation of a separate specialized section for the sale of this crop through commodity exchanges.

At the same time, the regulator plans to revise the requirements for lots, increasing the minimum size of the potato delivery batch. According to the ministry, the allocation of potatoes to a separate section will allow for consideration of the specific characteristics of the product during trading. It is expected that larger lots and separate trading will enhance price transparency in the domestic market and make the exchange mechanism more attractive to major industry participants.

The second set of amendments concerns the oilseed sector. The developers of the draft propose to remove soybean products from the list of goods subject to mandatory exchange trading.

This measure is a form of deregulation. According to the Ministry of Trade’s calculations, removing soy from the exchange list will eliminate unnecessary administrative barriers. In turn, this should reduce the financial burden on farmers and processing enterprises and simplify the process of selling the product.

Currently, the document is in draft status. The timing of the entry into force of the changes will be determined after the completion of the approval procedures.