Kazakhstan Develops Grain Traceability System


May 26, 2023 | Agricultural Markets News

Reading time: 2 minutes

The Ministry of Agriculture of Kazakhstan is developing a unified Grain traceability system. With its introduction, the import, export, and transportation of Grain within the country will be allowed by those entrepreneurs who will be included in the registration of this system. This was announced at the International Grain Conference Eurasian Agricom by Almabek Mars, Chairman of the State Inspection Committee in the agro-industrial complex.

“One of the topical issues that the Grain Union is actively raising is the accounting for Grain availability in the country. Our committee for the full solution to this problem is developing a unified traceability system. I would like to announce that this system will be officially introduced in 2023,” said the Representative of the Ministry.

Participation in this system will be mandatory for everyone involved in Grain transportation: farms, individual entrepreneurs, traders, etc. Suppose a legal or natural person is not registered in the system. In that case, they will not be able to obtain a phytosanitary or quarantine certificate for movement within the territory of the Republic and beyond its borders.

In addition, farmers will also become participants in the system: they will enter production indicators, such as sown area, crops, yields, etc. As a result, the Ministry of Agriculture will receive an objective picture of Grain availability in the country, based on which accurate decisions will be made regarding food security and the functioning of the Grain market. This includes the introduction of restrictions on the export of Grain, the fight against gray imports, price targets for Grain purchase for state resources, and so on.

Prices for Forward Grain Purchases in Kazakhstan

This year, the Food corporation will finance farmers under two schemes: as part of the forward purchase of agricultural products and by providing targeted commodity loans. This was reported in the press service of the Corporation. The volume of financing for the forward purchase of Grain and Oilseeds will amount to 20 billion tenge, excluding the amount of the surcharge paid after the delivery of agricultural products.

The amount of advance payment for agricultural products for forward purchase for 2023 will be:

  • Soft and hard Wheat – 70,000 tenge with VAT (62,500 without VAT);
  • Barley – 50,000 tenge with VAT (44,640 without VAT);
  • Buckwheat and Sunflower – 100,000 tenge with VAT (89,280 tenge without VAT);
  • Oilseed flax and Rapeseed – 90,000 tenge with VAT (80,350 without VAT).

The amount of financing after a forward purchase agreement is calculated from the ratio: of one ton of agricultural products to 1.5-2 hectares of acreage minus the acreage declared when receiving financing under other programs of the Corporation. The advance payment amount under the contracts will be paid after the SEC or STB guarantee is provided, and the surcharge will be paid in the autumn period after the delivery of agricultural products.

The deadlines for the fulfillment of obligations under forward purchase agreements are as follows:

  • For the supply of soft Wheat, hard Wheat, Barley, buckwheat, oilseed flax seeds, and Rapeseed – until November 1, 2023, inclusive;
  • For the supply of Sunflowers – until November 15, 2023, inclusive

To ensure a fair distribution of funding, all applications of potential participants in the 2023 Forward Purchase Program will be sent for approval to the Coordinating Councils under the akimats of the regions. Forward purchase contracts will be concluded with manufacturers who have fulfilled their obligations under the agreements of 2021-2022 and have no debts to the Corporation as of January 1, 2023.

In addition, the Food Corporation will begin issuing a targeted commodity loan, due to which farmers will receive Grain from the Corporation for further sale. Farmers should use the proceeds to carry out sowing operations.

Other sources: GRAIN UNION

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