Akimats have all capabilities to resolve issues of providing market with sugar — Umirzak Shukeyev

September 25 at the meeting of the Government chaired by the Prime Minister Bakytzhan Sagintayev, outside the planned agenda, the issues of providing agricultural producers with diesel fuel for timely harvesting and the situation on the sugar market were considered.

Deputy Prime Minister and Minister of Agriculture Umirzak Shukeyev reported that rainy weather have intervened 2018 harvesting a little, but in spite of this, intensive work continues in the regions.

"Today 73% is harvested, it’s more than 14 mln tons of grain. Of these, Kostanay region collected more than 85% and approached last year's indicators, North-Kazakhstan region — 70.8%. It is also worth noting the lagging areas. This are Akmola region — 61%, Karaganda — 57%, Pavlodar — 58%. The weather forecast for the coming week is favorable, and I think the akims of these three regions need to take this opportunity and take additional measures, because if we do not harvest now, we can incur large expenses," Shukeyev said.

According to the Ministry of Agriculture, the yield is generally quite good: at the moment grain growers receive 13 centners of grain per 1 hectare. At the same time, there is a possibility of a subsequent increase in yields.

Also Deputy Prime Minister — Minister of Agriculture commented on the situation regarding the allocation of additional diesel fuel for the needs of agricultural producers. Recall, at the last meeting of the Government, akims of the regions, to reduce the moisture of wheat in connection with weather conditions, asked to allocate a cheaper diesel fuel.

Shukeyev notes that according to the schedule, 393,400 tons of diesel fuel for 164 tons per liter was allocated in 2018 for grain harvesting. About 73% of them were delivered from the refinery and 89% were paid.

"But since additional demand for diesel fuel has been received, now, together with the Ministry of Energy, on your instructions, we allocated additional 50,000 tons of diesel fuel. In particular, 14 tons of diesel fuel will be allocated to the Akmola region, 5,000 tons — to East Kazakhstan, 2,000 tons — to Karaganda, 13,000 tons — to Kostanay, 2,000 tons — to Pavlodar, and 14,000 tons — to North Kazakhstan. It costs 191 tenge per liter. It is cheaper than prices in the market by 9%," Shukeyev noted.

Shukeev also commented on the situation with sugar in the market.

"Last week we invited our Russian, Belarusian, Kyrgyz colleagues, sugar producers of the EAEU countries to the ministry and organized a meeting with them. It involved our confectionery factories, companies that produce beverages, sugar and akimat representatives," Shukeyev said.

As a result of the meeting, all the Eurasian sugar producers adopted Kazakhstan's requirements and agreed to ensure the existing demand for sugar.

"The cost of sugar will not be higher than now in the Russian market, that is, its cost will be 35 rubles per kg (as of September 25 — 190.01 tenge). At the same time, Russian and other sugar producers proposed to organize a tender for our confectionery factories in order to reduce prices," said the Deputy Prime Minister, noting that holding tenders can significantly reduce the cost of sugar.

At the same time, the Ministry of Agriculture concluded an agreement with the sugar producers and regional akimats on sugar prices.

"We talked about numbers. Depending on the indicators in the stabilization funds in all regions it is necessary to buy sugar. We from our side have done all the necessary work: met with the producers, negotiations were held. Now the akimats of the regions need to buy the necessary amount of sugar in stabilization funds. If sugar prices in the future are unstable, the akimats will have all the capabilities to cope with this problem, they will be able to sell sugar from stabilization funds," Shukeyev said.

In general, according to the agreement, the regions have the opportunity to purchase 10,878 tons of sugar. Among them, Akmola region — 443 tons, Aktobe region — 1,500 tons, Almaty region — 1,500 tons, Almaty — 1,200 tons, Atyrau — 250 tons, West Kazakhstan — 283 tons, Zhambyl — 920 tons, Karaganda — 407 tons, Kostanay — 519 tons, Kyzylorda — 430 tons, Mangistau — 400 tons, Pavlodar — 336 tons, North Kazakhstan — 436 tons, Turkestan — 1000 tons, East Kazakhstan — 680 tons, Astana — 574 tons, Almaty — 1,500 tons. According to the Ministry of Agriculture, accounts of these sugar producers have the necessary funds.

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