As wheat prices soar across Central Asia, officials in Kazakhstan, the region's key grain supplier, have resorted to controlling exports to stem rising domestic costs. Experts fear the move will complicate matters for its neighbouring nations, pushing wheat prices further up (see 'Forks down for pasta', Down To Earth, October 15, 2007).
The Kazakh government estimates that the country will harvest 19-20 million tonnes of grain this season. "This is enough to satisfy domestic demand and export potential," Deputy Agriculture Minister Akylbek Kurishbayev told parliament on September 12. To address concerns about price rise, the government has, however, imposed restrictions on grain exports and introduced a licensing system for grain exporters. Bread and flour prices in the country have risen by about 14 per cent. The government is now planning to export grains to its neighbours at a hiked price to reap benefits. The move will, however, hit Kazakhstan's poor neighbours. In an indication of how spiralling food prices are hitting its economy, Kyrgyzstan has revised its annual inflation estimate from 5-6 per cent to 9 per cent. Officials have set up a Food Security Council to stabilize prices and are considering tax perks for traders dealing in baked products. Bread prices in Kyrgyzstan have gone up by 50 per cent. Protests were reported in Uzbekistan and Tajikistan over soaring prices.
We are a voice to you; you have been a support to us. Together we build journalism that is independent, credible and fearless. You can further help us by making a donation. This will mean a lot for our ability to bring you news, perspectives and analysis from the ground so that we can make change together.
.png)
Comments are moderated and will be published only after the site moderator’s approval. Please use a genuine email ID and provide your name. Selected comments may also be used in the ‘Letters’ section of the Down To Earth print edition.