Kazakhstan to ship grain to Southeast Asia through China

A grain trade agreement between China and Kazakhstan will open up a new trade route to the Southeast Asian grain market.

China will buy up to three million tonnes of grain from Kazakhstan, said Deputy Prime Minister Umirzak Shukeyev.

Kazakhstan and China also plan to launch a grain terminal at the border. Asyljan Mamytbekov, board chairman of state agricultural firm KazAgro, said Kazakhstan will start grain exports through China from the beginning of next year.

The company will supply 700,000 tonnes of grain to South Korea and up to three million tonnes of grain to Southeast Asia via China, he said.

Kazakhstan, which traditionally exports grains to other parts of Central Asia and nearby markets such as Iran and Caucasus, has harvested about 20 million tonnes of grain this year, up from last year's 15.6 million tonnes.

As a result, Kazakhstan is looking for new markets to consume the surplus grain.

Kazakhstan expects to export a total of 10 million tonnes of grain in the current season.