March 31, 2010

Kazakhstan has exported 5.5 million tonnes of grain harvested in 2009, an increase of 1.3 million tonnes compared to last year, said Kazakh Agriculture Minister Akhylbek Kurishbayev.

Despite the surge in exports, the national granaries are overstocked as a result of last year's bumper crop. Grain storage is 4.9 million tonnes more than that of last year.

Kurishbayev suggested to double transportation subsidies for grain exports through Russia and China to US$40/tonne.

The increase in transportation subsidies will help empty storage before the arrival of the harvest period this year, thus stabilise domestic grain market and protect the interests of farmers, he said.

Kazakhstan's farmland area affected by a locust plague is estimated to reach 900,000 hectares in 2010. Large-scale herds of locusts across the country have been extinguished by the state treasury.

However, scattered small-scale locust infestations remain a serious threat to the country's agricultural production, according to the minister.