by PressKazakhstan plans to sell wheat to Iran instead of Afghanistan
Farmers in Kazakhstan want to sell wheat to Iran
The coming to power of the Taliban in Afghanistan led to the suspension of many diplomatic and trade relations, including the export of agricultural products. For a long time, Kazakhstan was a major supplier of grain to this country, and now that all agreements have been suspended, the exporter is forced to look for new markets for its products. The Kazakh government plans to sell wheat to Iran, where a drought has significantly reduced the crop.
The Iranian government is actively looking for reliable importers of grain. While we are talking about supplying at least 6 million tons, the figure can grow depending on trends in demand in the domestic market. In turn, experts say the need to purchase 8 million tons to cover all the needs of the population and production. The request from Iran opens up new opportunities for Kazakhstan, where the main buyer of wheat for a long time was Afghanistan. Now local farmers are deprived of this market, and must quickly look for new options for selling products. And Iran may become one of the export options. It should be noted that this country only this year lifted the ban on wheat imports.
Last season, Iranian farmers themselves coped with the task of providing the domestic market with the necessary amount of products. In addition, the country replenished its strategic grain reserves, thanks to which the agricultural enterprises were able to reach the level of self-sufficiency. Last year, the production of wheat in Iran amounted to 14.5 million tons, which is 1.2 million tons more than in the previous period. Harvest volumes allowed the country for 5 years to provide the domestic market and replenish the state reserves without the help of foreign traders. However, dry weather has made its adjustments, and now Iran needs to look for new options to provide the population with grain.
The government is open to building new trade ties and considers the Eurasian Economic Union to be one of the promising avenues. Iran plans to expand export/import of food and agricultural products with the community. Now exports from Iran to the EAEU make $258 million, and imports — $347 million.
As for Kazakhstan, its representatives are already negotiating with Iranian officials to establish the supply of wheat. However, even if the deal between the countries is signed, Kazakhstan will not be able to fully compensate all of the losses that it will incur in the case of a freeze in the supply of Afghanistan. Local traders need to enter new markets to sell their products, especially since wheat exports are considered one of the main sources to replenish the treasury.