Uzbek President Islam Karimov is expected to visit Kazakhstan this fall and there are now intensive preparations for a high-level meeting with the trade partner which is an important market for Kazakh grain and flour, the source noted.
According to IA “Kazakh-Zerno”, Uzbekistan is reducing flour imports from Kazakhstan, focusing on the processing of Kazakh grain. In 2011, Kazakhstan delivered more than 12 thousand tons of flour to Uzbekistan, which is about 65% of the total export volume of this product. This is more than 1.6 million tons of grain.
However, exports of Kazakh flour to Uzbekistan may be reduced due to the latter introducing a 15% excise duty on flour last year. Thus, Uzbekistan is expanding flour production using grain from Kazakhstan as the main resource base and planning to fully supply its domestic market as well as increase flour exports to neighboring Afghanistan. There are over 60 private flour mills in Tashkent and its outskirts. Their total processing capacity is no less than 1.5 million tons of grain per year. All private mills use wheat supplied from Kazakhstan.