The issues of stabilization of prices for socially important food products were discussed at the Republican headquarters in the Digital Office of the Government, chaired by Prime Minister Alikhan Smailov.  

As the First Deputy Minister of  socially important food products since the beginning of the year amounted to 4.2%, and by the end of May 0.7%. Astana (6.1%), East-Kazakhstan region (5.3%), and Zhetisu region (5.3%) are the antiliders of this indicator this year. Onion, cabbage, rice and carrots rose the most, while prices for buckwheat, sugar, sunflower oil and flour fell. 

Ministry of Trade and Integration developed a new approach to reduce the inflation rate by half, aimed at supporting producers of food products that contribute most to the rise in prices in the socially important food products. This includes beef, sunflower and butter, rice, sugar and vegetables. To date, 78 major producers have been identified. The new algorithm will provide a focused approach to each product, from production and storage to sales. 

Support measures will differ, based on the specifics of production and current problematic issues of enterprises. Prices for vegetable group of goods will be regulated by entering into forward contracts with socio-entrepreneurial coproduction. At the same time it is planned to conduct all the work through a special information system that will cover the activities of regional socio-entrepreneurial coproduction, "Prodkorporatsiya" and their partners. This system of goods traceability will become an "electronic mirror" of the work on price stabilization.

Deputy Minister of Agriculture Yerbol Taszhurekov said that provision of the domestic market for 29 major types of food products at the expense of domestic production is 80% or more. The issue of import substitution will be resolved comprehensively through the implementation of more than 900 investment projects in the agro-industrial complex up to 2026 for a total amount of 2.8 trillion tg. In particular, 270 projects worth 241 billion tenge will be implemented in 2022, another 291 projects worth 536 billion tenge are planned to be launched in 2023.

According to the operational data of the regions on June 2, there are 589 thousand tons of food products, including more than 104.3 thousand tons of potatoes, 20.9 thousand tons of onions, 25.1 thousand tons of carrots and 28.8 thousand tons of cabbage. Along with it from June till July collection of 218,3 thousand tons of early potatoes, 161,2 thousand tons of early onions and 30,3 thousand tons of early carrots is planned. In Turkestan region in the current moment collected 96 tons of cabbage, plan for June makes up 59.4 thousand tons, in July - 25.9 tons. These volumes of early maturing vegetables are enough to meet domestic demand.  

Deputy Chairman of the Agency for Protection and Development of Competition Bolat Sambetov reported on antimonopoly response measures. Particularly, 15 investigations were initiated and more than 150 acts of antimonopoly supervision were registered from the turn of the year with respect to food markets.

Akims of Astana Zhenis Kasymbek, of East Kazakhstan region Danial Akhmetov and of Zhetisu region Beibit Isabayev also reported on measures taken. 

Prime Minister pointed out that in May cabbage prices rose by 22.3%, carrots by 10.8%, onions by 9.6%, potatoes by 6.6%, which indicates the ineffective work in the field to provide the market with vegetables during the off-season.

"The government has reviewed all price stabilization mechanisms, made appropriate changes in industry regulations and legislation. All this organizational work is carried out jointly with the akimats. At the same time, one of the factors of price growth is the lack of contracting in the regions," Alikhan Smailov said.

He also noted weak coordination from the Ministry of Agriculture. 

"For price stability, the market must be constantly provided with sufficient supply. For example, the Ministries of Trade, Agriculture and Akimats started working with Tajikistan on buying onions back in February and March. However, it was purchased only in May, when its price rose by almost 10%. It was a lost opportunity to buy goods at a reasonable price. Each region, knowing their specifics, must in advance sign contracts with the producers," Prime Minister stressed. 

Head of the Government has instructed to ensure full implementation of the new algorithm of restraining prices for food products and timely conclusion of contracts with producers of agricultural products, and to strengthen the identification of unproductive intermediaries and control of trade mark-ups.

#The Prime Minister of the Republic of Kazakhstan #Socially Important Food Products