Economics

Kazakhstan Seeks Faster Uzbek Transit Approval for Oilseed Meal

Kazakh oil processors have urged Uzbekistan to shorten approval times for transit shipments of sunflower meal and oilcake through its territory.

Kazakhstan is urging Uzbekistan to expedite the veterinary approval process for the transit of oilseed meal, specifically sunflower meal and oilcake, across its territory. This request was made during the Uzbekistan-Kazakhstan Business Forum held in Tashkent.

Currently, obtaining transit approvals from Uzbekistan takes approximately 30 working days, according to the Chairman of the Oilseed Processors Association of Kazakhstan. He highlighted that these products are already processed, and the lengthy wait time is a significant hurdle. In contrast, he noted that other countries facilitating the shipment of Kazakh sunflower meal to Europe complete transit approvals in a maximum of 10 working days. He emphasized that Kazakh oil processing plants face a waiting period three times longer in Uzbekistan and advocated for a reduction in approval times to align with international standards.

Davron Vakhabov, Chairman of the Chamber of Commerce and Industry of Uzbekistan, assured that this matter would be addressed at the subsequent day's business council meeting. He stated that a representative from the recently established food safety agency would be invited to participate. Vakhabov also suggested that officials responsible for issuing business permits should become permanent attendees of the council.

Kanat Sharlapayev, Chairman of the Presidium of Kazakhstan's National Chamber of Entrepreneurs Atameken, endorsed this proposal, calling it the "right approach" to foster dialogue and participation from relevant authorities.

Kazakhstan holds a prominent position as a supplier of vegetable oils to Uzbekistan and is a key provider of high-protein sunflower meal, essential for the poultry and livestock industries across Central Asia.

Industry projections indicate that during the first nine months of the current season, shipments of vegetable oils and sunflower meal from Kazakhstan to Uzbekistan are expected to reach approximately 650,000 tonnes, valued at US$440-445 million. This represents a 27% increase compared to the previous season.

Furthermore, the proportion of packaged refined vegetable oil in these supplies has grown. It constituted about 38% of total supplies in the first nine months of the current season, up from around 30% in each of the preceding two seasons. In absolute terms, the volume of packaged refined oil supplied has nearly multiplied by 2.6 over the last three seasons.

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