The Mongolian Cabinet has submitted a draft bill to parliament to free wheat imports from value added tax and the customs duty. The bill aims to exempt 225 thousand tonnes of wheat and additional 10 thousand tonnes of grain import from taxes. Due to extreme drought across the country, Mongolia was only able to harvest 40 percent of the required wheat and hay.

As a result, Mongolia urgently needs to import hay and fodder. For the country’s herders this is literally a matter of the survival of their herds and livelihoods. Each year, Mongolia prepares 1.2-1.4 million tonnes of hay for the winter. This year, the country has less than 850 thousand tonnes of hay in store.