Kazakhstan plans to reduce sugar imports to 17% by 2026

A number of instructions on the sugar industry development for the coming years was given by the Prime Minister, Alikhan Smailov, at the Government session.

Acting Minister of Agriculture Abulkhair Tamabek said that on the instruction of the Head of the State the Comprehensive Sugar Industry Development Plan until 2026 was developed, which provides for increase of raw material base through expansion of sown areas of sugar beet, introduction of new irrigated lands, introduction of water-saving irrigation technologies, development of seed production, technical and technological upgrade of existing sugar beet processing facilities, as well as construction of new innovative plant.

The implementation of the plan will reduce the share of sugar imports from 58% to 17% by 2026.

Akims of Zhetysu region Beibit Isabayev and Pavlodar region Abylkair Skakov also made reports on this topic.

Summarizing the discussion, Alikhan Smailov said that ensuring food security and saturation of the market with domestic products is a strategic task of the Government.

"The current situation has revealed a number of problems for some commodity items, first of all for sugar. We see the complaints of citizens about a shortage of sugar and its high price. The Head of State has also made fair criticism concerning the provision of the market with sugar. In this regard, a corresponding comprehensive plan for the development of the industry has been developed," the Prime Minister said.

Alikhan Smailov noted that first of all it is necessary to provide Kazakhstan sugar plants with domestic raw materials. For this purpose, it is planned to increase sown area by more than 3 times, from 11.5 thousand to 38 thousand hectares.

"This will allow to increase the volume of sugar production from domestic raw materials to 250 thousand tons annually in the next five years," the Head of Government stressed.

In addition, according to Prime Minister, it is necessary to carry out a significant upgrade of existing factories and expand their production capacity.

"In general, the situation with sugar supply has stabilized. Sugar is available, stocks are replenished. At the same time, it is important to stop manipulation with the cost of sugar, identify non-competitive actions and unproductive intermediaries to prevent a rush," Alikhan Smailov noted.

In conclusion, the Prime Minister instructed the Ministry of Agriculture in cooperation with the Ministry of Trade and Integration and regional Akimats to implement a comprehensive plan for the development of the sugar industry in full.

The Ministry of Agriculture together with the Ministry of Trade and Baiterek Holding were instructed to work out the issue of preferential crediting of sugar plants for their modernization and replenishment of circulating funds for purchase of raw materials.

In addition, the Ministry of Agriculture in cooperation with the Akimat of Pavlodar region and the Baiterek Holding should take measures to expand the volume of sugar beet production in the region, as well as work out the issue of construction of a new sugar plant in the region.

The Ministry of Trade was also instructed to work out the issue of setting minimum retail prices for sugar to protect the domestic market from dumping.

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