February 15, 2006

China to import grains from Kazakhstan to cover deficits
 

China is placing orders for 50,000 tonnes of Kazakhstan feed grain to cover its growing deficit as strong growth in the economy continues and grain demand increases in the country of 1.5 billion people.

China has had grain deficits for several years in a row with the highest reaching 13 million tonnes. Part of the deficit is covered by the 7.6 million tonnes China imports from Canada, US, Australia and other countries. That still leaves a 5 million tonne shortage and China's neighbours Kazakhstan and Russia are hoping to fill the gap.

There has been growing interest in Kazakhstan grain in China in recent years. However problems abound with supposed crop control issues and grain import quarantine by the Chinese authorities. Even though an agreement for crop control and diseases was agreed upon in talks by both governments in 2004, China has not ratified it.

Chinese authorities have refused to issue grain import permits for Kazakhstan, pointing to the threat of possible diseases as the primary reason.

Adding to the confusion is China's reports in the media stating the country's intention to import large quantities of grain from Russia, heightening fears in Kazakhstan that its deal with China may fall through.