Wheat prices in Kazakhstan heavily dependent on international markets - Professor Kusainov

That has been told by the doctor of economic sciences, professor of the Kazakh Agro Technical University after S.Seifullin Talgat Kusainov, who was speaking at the Republican scientific-practical conference titled "Actual problems of economic development of the agro-industrial complex of Kazakhstan in the context of globalization", dedicated to the 50th anniversary of the Faculty of Economics KazATU named after Saken Seifullin.

"The results of the calculations show that in the context of Kazakhstan's grain market the wheat supply is perfectly inelastic to changes in its internal price - an increase of 1 percent does not lead to an increase in supply. Thus, the domestic price of wheat almosthas no effect on the volume of production ", said T.Kusainov.

At the same time, according to the scientist, the rise in prices on the international market by 1 percent leads to an increase in wheat production in Kazakhstan by 0.6 percent. As noted by T.Kusainov, this is due to the fact that wheat production in Kazakhstan is the export-oriented sector of agriculture. In the period from 1998 to 2010, home prices rose an average for the year to 3.7 percent, and in international markets by 3.6 percent. Practical equality of growth rates of domestic and world prices indicates a strong dependence of the inner dynamics of prices on the world prices for the products. This is evidenced by the high correlation between prices in the domestic and international markets for wheat, which was 0.76%.