Iran ready to increase imports of Kazakh grain to 3 mln tonnes per year - Kazakh Agriculture Ministry

ASTANA. Jan 20 (Interfax) - Iran is interested in increasing grain imports from Kazakhstan to 3 million tonnes per year, the Kazakh Agriculture Ministry's press service said.

Kazakh Agriculture Minister Aidarbek Saparov met with the general director of the investment company Fawakeh Trading Company, Hassan Heydarinassab, on Monday, the press service said.

"Hassan Heydarinassab underlined the interest in increasing grain imports to 3 million tonnes per year. Prodcorporation [Kazakhstan's state operator in the grain market] could be the Iranian investors' partner," the press service said following the meeting.

The Kazakh side "is ready to provide comprehensive support to Iranian businesses and create all conditions for expanding exports of domestic agricultural products," Saparov said.

Prodcorporation has all the necessary capabilities to organize supplies of a wide range of Kazakh agricultural products, including wheat, barley, flax, rapeseed, lentils, peas and processed products, the ministry said. Prodcorporation also has extensive experience in attracting private agricultural producers for exporting agricultural products and is ready to sign long-term contracts.

Following the meeting, the parties agreed to develop joint proposals for further expanding trade cooperation in the agricultural sector.

In previous years, wheat exports from Kazakhstan to Iran totaled 550,000-560,000 tonnes per year, including 555,200 tonnes in 2021 and 560,000 tonnes in 2022, the Agriculture Ministry told Interfax. In 2023, wheat exports to Iran fell to 66,600 tonnes but rose again in 2024, reaching 427,500 tonnes. Exports of barley reached 550,000 tonnes in previous years (550,700 tonnes in 2021 and 409,000 tonnes in 2022), declined to 185,100 tonnes in 2023, and then rose to 309,000 tonnes in 2024.

"The reduction in Iranian imports of Kazakh wheat and barley is due to issues with mutual payments amid international sanctions against Iran, as well as the significant share of grain supplied by other countries (Russia, EU countries)," the ministry said.

The U.S. Department of Agriculture forecasts Kazakhstan's wheat exports for the current agricultural year (July 2024-June 2025) at 10 million tonnes. Kazakhstan's traditional export markets include Central Asia, Afghanistan and Italy.