Kazakhstan’s state grain trader will sell 1.3 million metric tons of stockpiled cereals to local millers in an effort to cap bread prices after a drought in main growing regions.
JSC National Co. Food Contract Corp. will supply the grain over the year starting Aug. 1 at a fixed price of 28,000 tenge ($186) a ton, according to an Agriculture Ministry statement distributed today to journalists in the capital city of Astana.
The company bought 5 million tons of grain last year from the 2011 harvest, of which 2 million tons held for state inventories would be milled to make flour and sold on the domestic market at fixed prices, Chief Executive Officer Beybitkhan Kabdrakhmanov said July 20. The rest was to be sold at market prices, he said.
The country’s grain crop may shrink to 12.8 million tons this year from the record 26.9 million tons reaped in the prior period, according to a statement on the government’s website yesterday.