September 1, 2010

Kyrgyzstan's grain prices show substantial increase

Grain prices in Kyrgyzstan increased an average of 30% in July amid droughts in Russia and Kazakhstan, according to economist Jumakadyr Akeneyev.

"The price per tonne of grain ranges from US$250-270, and it is possible that it will further increase. This means that flour and bread will become 10-15% more expensive," Akeneyev said.

At a press conference August 9, Kyrgyz Agriculture Minister Mamatsharip Turdukulov said he did not expect a sharp rise in the price of grain products.

"In 2010, we will harvest 871,000 tonnes of grain, which is 150,000 tonnes less than last year's figures. This amount will be bought from Kazakhstan," he said.

The government is filling its granaries by harvesting according to Kyrgyzstan's food security plan, Turdukulov said. "Our country as a whole requires 1.2 million tonnes of grain. We'll harvest 503,000 tonnes of wheat in all. In mid-August, 300,000 tonnes will be harvested from Kyrgyzstan's fields. The remaining crop will be harvested before the end of September."

The situation regarding the provision of grain remains precarious, which could lead to restriction of Kyrgyzstan's grain supply, Akeneyev said. Kazakhstan, one of the largest grain exporters, dropped its 2010 crop forecast as droughts reduced cultivated lands by 80,000 ha.

Kyrgyzstan needs to adopt a unified agrarian doctrine for 2010-2020, Centre for Agribusiness Competitiveness Director Torogul Bekov said.

"Presently, the country has laws and programmes that focus on developing and supporting the agricultural sector, but they all work in different directions," Bekov said.

In 2009, Kyrgyzstan grain reserves were at 120% of national consumption, he said. Prices went down, costing local farmers money.

"Under a single programme, we could import up to 100,000 tonnes of Kazakh grain in order to renew the seed reserves," he said.