Farmers of Kazakhstan insist on cancellation of payment for storage of grain
Taking into account the current situation in Kazakhstan, agrarians insist on cancellation of payment for storage of grain. It should be recalled than in Kazakhstan there is a big problem with selling grain, because this year, there were very high yields and no opportunity to sell it at adequate price. The country is sorely lacking grain hoppers and the existing transport infrastructure no longer satisfies the demand for transportation.
In addition, due to the fact that Russia also harvested a lot of crops this year, Russian crops replaces Kazakh in the international markets.
To solve this situation and stabilize prices, the government of Kazakhstan organized state purchases at a price higher than the market price. However, according to many agrarians, although quotas have already been distributed, this decision was made too late, since they had already spent money on grain storage and many suffered losses. Consequently, the price offered by the state is no longer enough for covering all expenses of agrarians.
Also, farmers are worried that the government will carry out the government purchases in a very short time, while to stabilize prices in the market it is necessary to make purchases systematically at least until spring.
To date, applications have been submitted for 15.000 tons of wheat, the cost of these purchases will be approximately 630 million tenge.