Lack of Russian wheat shutters Kazakhstan flour mills

While the Kazakhstani government has pledged to supply regional markets with wheat, many flour millers have ceased operations due to a lack of imports from Russia, according to a report from the Foreign Agricultural Service of the US Department of Agriculture (USDA), reports world-grain.com.
The government introduced wheat and wheat flour restrictions from April 15 to June 15 that allow Kazakhstani producers to export up to 1 million tonnes of wheat and 300,000 tonnes of flour. Exporters are expected to be required to sell 10 per cent of the exported volume to the domestic market at a fixed price. The Ministry of Agriculture said the restrictions are meant to balance exports with domestic food security needs.
The Kazakhstani grain industry said there is a severe lack of wheat imports from Russia, and the available wheat is extremely expensive. Wheat reached $355 per tonne, which is historically high.
At least 50 per cent of Kazakhstan's flour mills have ceased operating or are operating at very limited capacities. As of mid-April, millers said they have stocks left for about two weeks.
In previous years, lower priced wheat imports from Russia stopped domestic wheat prices from increasing.
"With Kazakhstan's wheat and wheat flour export restrictions coming into effect on April 15, exporters reportedly increased their shipments to avoid the export restrictions, with traders exporting 110,000 tonnes of wheat in just two days," the USDA said.