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Government holds meeting on stabilizing food prices

Friday, 14 May 2021, 12:44:11

First Deputy Prime Minister of Kazakhstan Alikhan Smailov chaired a meeting for considering prices for socially significant food products and measures taken to stabilize market prices.

According to the information provided by the Ministry of Trade and Integration of the Republic of Kazakhstan, the increase in prices for socially significant food products from the beginning of the year to May 4, 2021, amounted to 4.8%. At the same time, in April the cost of goods increased by 1.7%.

The highest growth was noted in the Atyrau region — 6.8%, Nur-Sultan — 6.3% and Shymkent — 5.6%. The smallest was recorded in the Almaty region — by 4.0%, the Karaganda region — by 4.3% and the Kyzylorda region by 4.4%.

The main drivers of price growth were imbalances in certain food markets, such as sunflower oil, sugar, chicken eggs and vegetable products. In particular, the First Deputy Prime Minister drew attention to the increase in the price of potatoes.

“The general picture shows that the Ministry of Agriculture needs to take sectoral measures to stabilize prices for certain food products,” Smailov stressed.

At the government session on March 11, 2021, the Roadmap for stabilizing prices for socially significant goods was approved, which consists of 45 events. Thus, prompt measures of antimonopoly response were taken, the introduction of price caps, the holding of agricultural fairs, the conclusion of memorandums on price stabilization, and daily monitoring of prices was organized.

In addition, the EEC made a decision to grant a privilege on the customs duty on raw sugar and introduced restrictions on the export of breeding stock of cattle and small cattle. As for the rest of the Roadmap measures, they are being implemented, as they require compliance with legislative deadlines and certain procedures.

At the same time, in the near future, the Ministry of Trade and Integration will initiate amendments to the draft law "On exchange trading" regarding the reduction of the terms of coordination of the decisions of the local authorities on the approval of price limits. This draft law is under consideration by the Majilis of the Parliament.

At the meeting of the Government of the Republic of Kazakhstan on May 12, issues were discussed on expanding the financing of forward purchases and the ‘turnaround scheme.’ In this regard, Smailov instructed akimats to expand forward purchases to 10 billion tenge and financing of the ‘turnaround scheme’ to 50 billion tenge by the end of May.

“Based on the results of the six months, it is planned to consider the issue of prices for socially significant food products at the Government meeting. Execution of orders according to the ‘turnaround scheme’, on forward purchases, according to the Roadmap should be kept under special control,” Smailov instructed following the meeting.


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