Kazakhstan may ban flour export in case of deficit

/REUTERS, Astana, Raushan Nurshaeva, May 27, 2008/ - Kazakhstan, is one of the world's major grain producer and exporter in Central Asia, may ban flour export to protect the domestic market, Prime Minister Karim Masimov told at the government conference on Tuesday. "In case of deficit we may ban it (flour export) at any time. For the time being there is no any necessity to make such decision" - he said. To protect domestic market, Kazakhstan banned wheat export from April 26 till September 1, but gave permission for flour export. The Minister of Agriculture Akylbek Kurishbaev said that the government plans to appropriate KZT18 bn. (about $150 m.) from the budget for state grain trader FoodCorporation on purchase 600.000 tons of grain of new harvest in Stabfund. FoodCorporation, except this volume, purchases 400.000 tons of grain for annual renewing of state reserves. Support from Stabfund will come to domestic market in case of grain deficit and also for evening of prices fluctuations, the minister explained. Last year Kazakhstan confronted inflation peak, which made 18.8% in annual expression. This year authorities promise to restrain it within 10.0%. "If we regularly purchase at least 1 m. tons of grain, 600.000 tons of which will be in stabilization resources, we can control the situation (with price on bread on domestic market)" - Kurishbaev said. Masimov authorized the Minister of Agriculture to report the situation on grain market once in two weeks in person. "Under the conditions of stable world deficit tendency of food grain and rise in price on it, the questions on domestic market regulation and its stable provision with grain become more actual," - Kurishbaev said. Among measures, which the government plans, the Minister singled out organization of exchange trades with grain; also monitoring on grain movement will be toughened. Last monitoring year Kazakhstan exported 9.0 m. tons. This year the volume of export may remain on the same level or even exceed it, notwithstanding the ban on grain export. In 2008 Kazakhstan forecasts grain harvest in net weight in volume of 15.9 m. tons compare to 20.1 m. tons in 2007. [2008-05-27]