Today, the grain and flour stocks of the country's mills have declined and represent a critical volume. Experts call the cause problems with the transport of Grain crop through Kazakhstan and the lack of grain trucks in Russia.
“Now there is a delivery delay of 30-40 days. Domestic companies have not yet received the quantities of raw materials ordered back in October, which has led to a significant reduction in flour and grain stocks in the mill warehouses. If events repeat themselves, when neighboring countries close borders or ban the export of grain and flour, we can only provide the population with flour for 25-30 days,” said Rustam Yunusov, President of the Mills Association of Kazakhstan.
The reasons for the interruption of deliveries of Russian grain were problems with its transit through Kazakhstan: since the beginning of November, 2.368 grain trucks have been stuck at the border crossing «Saryagash».
Due to congestion on the tracks, conventional driving bans for goods were introduced to clean up the tracks and stations.
Also on January 1, 2023 in Kyrgyzstan, flour and fodder will become more expensive by 15%, grain will become more expensive by 12%, and bread will become more expensive by about 18-20%. This is because December 31, 2022 is the deadline for tax relief for millers: from September 2021, no VAT was charged on grain processing and imports. Next year, consumers will pay VAT when buying grain and products made from it.
“Of course, the increase in the price of flour will also affect the cost of bread. Its price can increase by 18-20%,” emphasized R. Junushov.
Source: AgroBusiness (Kazakhstan)