January 21, 2004

Kazakhstan To Buy 2.478 Million MT 2004 Grain

Kazakhstan government's grain purchasing agent, Prodcorporation, is planning to buy from domestic farmers 2.478 million metric tons of grain harvested in 2004, Abai Bisembaev, the corporation's head said in Astana Tuesday.

Bisembaev said two million tons would be purchased with the use of credits from commercial banks and 478,000 tons with a budget allocation.

He added that the corporation would borrow $200 million on the international financial market.

Bisembaev also said 70% of the proposed grain purchases would be paid out to farmers during the spring and summer months under future contracts. This amounted to an interest-free credit, which would enable the farmers to purchase seeds, fuel and fertilizers on time.