Kazakhstan to buy domestic grain to guard against inflation.

By bne IntelliNews August 26, 2010
Kazakhstan plans to buy domestic grain and wheat from local farmers to guard against inflation. State-owned Food Contract Corporation is presently in talks with local farmers on purchase of 2-2.5mn tonnes of grain from this year's crops. The grain should be purchased by December. To remind you, grain prices are soaring as Russia banned grain exports a few weeks ago. Kazakhstan is among 10 largest grain exporters in the world. The country expects to harvest 13.5-14.5mn tonnes of grain this year, down by 30-35% y/y. Food Corporation bough 5mn tonnes of grain last year, of which 2mn tonnes remained in the elevators. After purchasing of additional grain, the company's stocks would double to 4-4.5mn tonnes. To remind you, the Kazakh government expects inflation at the level of 6-8% y/y this year. Significantly, in Jan-Jul, prices increased by 4.6% ytd.

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