October 29, 2009

Kazakhstan, Central Asia's largest grain producer, will spend US$33 million to subsidise grain exports to Baltic and Black Sea ports, said agriculture minister Akylbek Kurishbayev on Wednesday (Oct 28).

Kazakhstan exports mostly wheat to its Central Asian and Caspian neighbours but this year's good harvest meant those markets would be oversupplied, said the minister.

Kazakhstan will be able to export five million to six million tonnes at maximum to these traditional markets, Kurishbayev said, adding that the country could export up to nine million tonnes of grain.

But shipping grain to sea ports across Russia makes its price uncompetitive, and government subsidies will help reduce shipping costs, he said.

Kazakhstan harvested about 23 million tonnes of grain in bunker weight this year.