Kazakhstan to boost wheat exports by one-third

Jul 20, 2009 at 14:33
ALMATY, Kazakhstan - Major grain producer Kazakhstan plans to boost wheat exports by around one-third this year, the country's agriculture minister said Monday.

Central Asia's largest economy halted all wheat exports for five months last year in an effort to lower domestic consumer prices for the commodity, but is now seeking increased government revenue amid an economic crisis.

Agriculture minister Akylbek Kurishbayev said southern Russia, Iran, Afghanistan and other Central Asian nations were top wheat export destinations.

Kazakhstan is currently the world's sixth-largest grain exporter, after the United States, Canada, Russia, Argentina and Ukraine, with around 8 percent of the global market.

Kurishbayev added that diminished harvest and export prospects for Ukraine this year might allow for the resumption of exports of Kazakh wheat through Black Sea ports.

The International Grains Council reported in March that Ukraine's wheat harvest may decline by one-third to 18.2 million tons this year.

Kazakhstan harvested 15.6 million tons of grain last year, down from the record 20.1 million tons produced in 2007.

A fall in global demand and prices for energy and mineral resources has had a severe effect on Kazakhstan's oil-fueled economy. Rapid growth has also been hit by excess reliance on foreign borrowing, which dried up amid the global financial crisis.