The Grain Union of Kazakhstan made a proposal to temporarily suspend the adoption of measures to regulate grain exports.
Background to the question:
In mid-July, the media reported that Kazakhstan, starting from August 15 of this year, plans to limit the export of important grain crops from the country and completely ban the export of animal feed.
Action to be taken
— to introduce a quantitative restriction on the export from the territory of the Republic of Kazakhstan of soft wheat (class 5), barley, as well as meal and cake.
— to prohibit the export of hay, haylage, silage, oats and rye.
Restrictive measures were supposed to be introduced for six months from August 15, 2021.
The Grain Union of Kazakhstan proposes a balanced approach to the discussion of this issue and create a transparent mechanism for making and predictability of decisions on regulating the grain market with participation in the discussion of industry unions.
For these purposes, create a task force, which, no later than September 1, must form a preliminary grain balance, thereby determining the volumes that will be necessary to cover the needs of the domestic market, as well as determine the export potential.
Also, the task force will have to constantly monitor the state of the market and make proposals on measures and regulatory mechanisms.
Proposals put forward by the focus group should balance the proposed measures and the objectives for which they are aimed, as well as assess the impact of these measures on the state of the market and, if necessary, make proposals for adjustments.
The Grain Union considers it correct to notify market participants about the introduction of restrictions in advance (30 calendar days).
