Emblem
Official Source of the
Prime Minister of the
Republic of Kazakhstan
Menu
Emblem
Close button

Price increase for socially significant food products will not exceed 6% by the end of 2020 — Ministry of Trade and Integration

Tuesday, 15 September 2020, 10:27:27

At a government session chaired by Prime Minister Askar Mamin, issues of price regulation for socially important goods and food supply were considered. Minister of Trade and Integration Bakhyt Sultanov reported on the ongoing work on monitoring prices and response measures.

Since the beginning of this year, prices for socially significant food products have increased by 4.4%. The main growth was in buckwheat, sugar, carrots and potatoes. The main reason is the reduction in acreage.

According to Sultanov, since the beginning of the year, a rise in prices for socially significant goods has been observed in all regions. However, for the majority of goods, the demand on the domestic market was satisfied by domestic food products.

“There is a decrease in prices for five types of socially significant goods. Thus, prices for cabbage decreased by 21.4%. The overall growth compared to the same period in 2019 is two times lower. 90% of this growth, that is 4.1 percentage points, was recorded during the introduction of the state of emergency in the country,” the minister said.

The main reasons for this were changes in demand for food products associated with quarantine measures, changes in logistics and transportation of goods, shortages in the off-season.

At the same time, since May 2020, the rise in prices began to be regulated. In particular, prices in May increased by 0.1%, in June and July they did not increase, and in August they even decreased by — 1%. To stabilize prices, by a joint order of the Ministries of Trade and Integration, National Economy and Agriculture, the maximum prices for 9 socially important goods were set during the state of emergency.

In addition, the ministry sent proposals to the akimats to monitor compliance by domestic trade entities with the maximum retail prices.

In pursuance of these proposals, the akimats and territorial divisions of the Ministry are constantly monitoring, as a result of which 180 administrative fines were imposed.

“From March 22, 2020, for the period of the emergency regime, a ban was introduced on the export of 7 goods (buckwheat, sugar, potatoes, onions (garlic), sunflower seeds, sunflower oil, buckwheat groats), as well as a monthly quotation for the export of goods ( carrots, turnips, beets, cabbage, wheat flour and soft wheat). In order to prevent price increases from March to September 2020, the value added tax rate has been reduced from 12% to 8% on the import and sale of socially significant food products,” Sultanov said.

As the minister noted, local executive bodies use instruments such as a ‘reverse scheme,’ forward purchase and the formation of stabilization funds.

“The stabilization funds have formed 27.7 thousand tons of food and forward contracts for the supply of 21.6 thousand tons have been concluded. 14.2 billion tenge has been allocated from local budgets for the ‘reverse scheme’ with the obligation to curb prices for socially significant goods," Sultanov informed.

This market mechanism is already showing its effectiveness. Significant funds have been allocated in the city of Almaty in comparison with other regions. As a result, since the beginning of the year, prices for socially important goods in the city have increased by 2.2%. This is the lowest in the country.

At the same time, in Zhambyl and North Kazakhstan regions, funds were not allocated for the reverse scheme, as a result, the increase in prices for socially significant goods in these regions amounted to 6.1% and 5.7%, respectively.

According to Sultanov, antimonopoly regulation measures are one of the important instruments for stabilizing prices.

The Committee for the Protection and Development of Competition constantly monitors the internal market for collusion.

So, this year, 293 notifications were issued to market entities for the production and sale of food, fruit and vegetable and meat products, and 13 investigations were carried out.

“According to our estimates, the rise in prices for socially important food products will stabilize and will not exceed 6% by the end of the year. This estimate is taking into account all the current factors and the measures taken by the state to stabilize prices. In general, the main factors of price stabilization were the ongoing systematic work on the development of civilized retail and trade infrastructure, financing of the circulating scheme, strengthening monitoring and coordination of work within the framework of the adopted Roadmap for short and medium term measures to curb prices for socially significant food grain resources of JSC Food Contract Corporation to regional flour-grinding companies,’’ explained the minister.

On the part of the market, the increase in production volumes in agriculture and the development of civilized trade also have a positive effect on the reduction of prices.

“To monitor prices for socially important goods online, territorial divisions of the Ministry and akimats use the online system dosmart.kz. This system allows collecting up-to-date data from individuals, including photos of checks for processing by ML technologies and obtaining a 1% cashback, as well as monitoring prices and product availability in stores,” the minister said.

Currently, within the framework of price stabilization, the Ministry is carrying out the following systematic work:

First. Providing access to long-term finance for the modernization of non-stationary trading markets and purchasing trade equipment.

Second. Development of a set of measures for the development of electronic commerce.

Third. Work is underway to create a national distribution system.


News feed
27 September 2020, 17:48
Prime Minister of Kazakhstan Askar Mamin and President of Tatarstan Rustam Minnikhanov launch three projects in automotive industry 
25 September 2020, 16:35
Reorientation to fish farming, improvement of legislation and measures of state support — how fish industry developed in Kazakhstan
24 September 2020, 17:38
Prime Minister Askar Mamin holds seminar on development of country's fishing industry in Shardara 
24 September 2020, 12:14
Arman Shakkaliyev relieved as chair of Committee for Technical Regulation and Metrology of Ministry of Trade and Integration
23 September 2020, 17:50
Baiterek Holding increases financial support of manufacturing sector by 17% 
23 September 2020, 14:43
Astana EXPO-2017 wind power station to reach full capacity of 100 MW by end of 2020
22 September 2020, 12:12
Harvesting in Kazakhstan completed by 93.4% — Ministry of Agriculture 
22 September 2020, 11:16
Sixty-five public organizations for protection of consumer rights operate in Kazakhstan — Ministry of Trade and Intergation
22 September 2020, 10:05
Head of Government gives several instructions to strengthen consumer protection 
22 September 2020, 10:02
Export potential of harvest in Kazakhstan to reach 7.5-8 million tons of grain in 2020
21 September 2020, 16:51
Government session to be held Sep. 22 in Ukimet Uyi 
21 September 2020, 12:54
Government considers issues of mass sports development 
18 September 2020, 18:26
Issues of preserving jobs and timely payment of wages discussed in Government of Kazakhstan
17 September 2020, 18:56
Prime Minister Askar Mamin meets with President of Turkmenistan Gurbanguly Berdimuhamedov
17 September 2020, 18:45
Government of Kazakhstan discusses issues of social protection of disabled people
16 September 2020, 18:09
Yerlan Kiyasov appointed Vice Minister of Healthcare - Chief State Sanitary Doctor of the Republic of Kazakhstan
15 September 2020, 12:26
Work underway in Kazakhstan to saturate domestic market with basic products for stabilizing prices — Ministry of Agriculture
15 September 2020, 10:27
Price increase for socially significant food products will not exceed 6% by the end of 2020 — Ministry of Trade and Integration
15 September 2020, 10:07
Prime Minister of Kazakhstan Askar Mamin instructs to ensure strict control over stability of prices for socially significant food products
15 September 2020, 09:44
Under Industrialization Map in Kazakhstan, 206 projects worth 1 trillion tenge to be introduced in 2020
15 September 2020, 09:29
For 8 months of 2020, 4.3 thousand new jobs created under Industrialization Map — Ministry of Industry and Infrastructure Development
14 September 2020, 22:47
Introduction of Industry 4.0 in Kazakhstan, or how smart factories worked during quarantine period and global pandemic
14 September 2020, 18:42
Interdepartmental Commission adopts decisions on work of businesses
14 September 2020, 14:02
Government session to be held Sep. 15 in Ukimet Uyi
14 September 2020, 10:51
Strategic directions for development of Eurasian Economic Integration until 2025 considered at session of EEC Council
11 September 2020, 13:07
Prime Minister Askar Mamin introduces Minister of Emergency Situations Yuri Ilyin
10 September 2020, 23:45
Distance learning, epidemiological situation, provision of villages with Internet — how educational process organized in Kazakhstan
10 September 2020, 13:12
Production of electronics industry of Kazakhstan to increase 8.5 times over 3 years
09 September 2020, 15:06
Roman Sklyar pays working visit to Atyrau region
09 September 2020, 11:59
Ministry of Healthcare on CVI: In Kazakhstan, there is a 6-fold decrease in bed occupancy
09 September 2020, 11:31
Food production for 8 months of 2020 increased by 3.6% — Ministry of Agriculture
09 September 2020, 11:21
Market of Kazakhstan fully provided with petroleum products of domestic production — Nogayev 
09 September 2020, 11:19
In Kazakhstan, total volume of container transit traffic increased by 37% — Ministry of Industry and Infrastructure Development
09 September 2020, 11:02
Measures taken stabilized epidemiological situation in the country — Prime Minister of Kazakhstan Askar Mamin 
09 September 2020, 10:54
Following results of 8 months of this year, positive dynamics remains in basic sectors of economy
09 September 2020, 10:53
Government adopts National Plan for Implementation of Address of the Head of State to People of Kazakhstan
09 September 2020, 10:25
604 loans issued under Economy of Simple Things Program — National Bank
09 September 2020, 10:20
Following results for 8 months of 2020, state budget received 5.5 trillion tenge of revenues — Ministry of Finance
09 September 2020, 10:13
Growth in construction, agriculture and manufacturing industry — Ruslan Dalenov reports on results of socio-economic development for 8 months of 2020
09 September 2020, 10:06
Draft National Action Plan for implementation of President's Address includes 10 key areas
07 September 2020, 17:10
It is planned to double fines for violations in the field of environmental protection — Magzum Mirzagaliyev spoke about implementation of President’s Address
07 September 2020, 16:33
Digitalization of land relations to eliminate human factor, bureaucracy and corruption — Omarov on implementation of President's Address
07 September 2020, 16:27
Beibut Atamkulov on implementation of President's Address: Mechanism for subsidizing rent to be approved by the end of 2020
07 September 2020, 16:14
Government session to be held Sep. 9 in Ukimet Uyi
07 September 2020, 15:39
Focusing on industry and development of transport infrastructure in Kazakhstan — Roman Sklyar speaks about main aspects of President's Address
06 September 2020, 09:34
Video Digest: Main events of the week, No. 76
05 September 2020, 14:10
Session of EEC Council: Several issues of further development of Eurasian economic integration discussed
05 September 2020, 13:41
Production of stationary ventilators opened in Kazakhstan
05 September 2020, 03:37
Construction, Support for SMEs and Investment — how East Kazakhstan Region developed during the pandemic
05 September 2020, 01:46
Briefing to be held on measures to implement Address of the Head of State
© 2019 - 2020 Press service of the Prime Minister of the Republic of Kazakhstan.
Developed by SoftDeCo.