Mongolia has signed an interim trade agreement with the EAEU, which will take effect in July 2026. One of the consequences for the country is a reduction in customs duties on grain. Cheaper imported grain will enter the Mongolian market from Russia and Kazakhstan—countries that practice agriculture on a continental scale with industrial efficiency.

MongolianNews has expressed concern over this issue. The situation in Mongolia’s grain market could become a serious problem for local farmers who are unprepared for such a challenge, according to Central Fsia.media. 

Of Mongolia’s 1.27 million hectares of arable land, half is cultivated partly thanks to a crop rotation system with fallow periods. In the western mountainous region, 82% of agricultural land remains uncultivated. In response to this structural inefficiency, the government has concentrated more resources in the central region, which already produces the vast majority of the country’s grain, while the rest of the country’s agricultural land remains unused.
This centralization has long been a known vulnerability. 

Currently, the Mongolian agricultural sector is already undergoing massive structural changes due to a sharp increase in imports of cheap Russian wheat, devastating droughts within the country, and new free trade frameworks.

Russian wheat exports to Mongolia during the 2025/2026 marketing season have increased 5.5-fold compared to the same period last year, reaching 94,000 tons. According to forecasts by the U.S. Department of Agriculture (USDA), total grain imports to Mongolia this season will double, reaching 255,000 tons.

Published Date:2026-06-11