"They are earning extra margin": Alikhan Smailov gives instructions on providing sugar

Prime Minister of Kazakhstan Alikhan Smailov held a meeting on price containment for socially significant food products on Saturday, June 25, at the Digital Office of the Government.

Chair of the Trade Committee of the Ministry of Trade and Integration of the Republic of Kazakhstan Yerzhan Kazanbayev reported on the current situation and measures taken to stabilize prices.

Thus, since the beginning of the year, the rise in prices amounted to 17.1%. The prices of onions, cabbage, sugar, potatoes, carrots, and buckwheat increased the most. In the context of regions, the largest rise in prices is noted in Zhambyl and Mangystau regions — 18.7%, Almaty — 18.6%, Nur-Sultan and Almaty cities — 18.5% and Shymkent — 18%.

At the same time, during the meeting, it was noted that in the markets of neighboring countries, the situation with the growth in prices for food products is developing in a similar way. Thus, in Russia since the beginning of the year there has been an average increase in food prices of about 40%, in Uzbekistan — 48%.

The Profile Committee continues to coordinate akimats to ensure that retail outlets comply with an allowable markup of no more than 15%. Thus, 42.6 thousand convenience stores (84.7%) have been covered by raids in recent weeks. As a result, 712 violations were identified, for which the necessary measures were taken.

As proposed measures, Kazanbayev proposed to develop a joint order of government agencies that allows the transfer of electronic invoice data to the antimonopoly authorities and LEAs to identify facts of exceeding the trade markup and take the measures provided for by law.

According to the Ministry of Agriculture, the country currently has stocks of basic products in the amount of 607 thousand tons, including beef (22,292 tons), poultry meat (19,600 tons), potatoes (93,749 tons), flour (118,506 tons), milk (59,640 tons), etc.

As for sugar, the total stock of the product in the republic is 101.4 thousand tons with domestic consumption in June this year. 59 thousand tons, that is, the market supply is 171.4%.

In turn, Alikhan Smailov pointed out the need to strengthen the work on controlling the 15% trade markup, especially in convenience stores.

“According to the Ministry of Agriculture, sugar reserves are over 100,000 tons, while our monthly consumption is 59,000 tons. This is more than enough. But at the same time, in some convenience stores, sugar is sold at 700-800 tenge. This occurs as a result of the illegal entrepreneurial activities of individuals who, taking advantage of the rush demand, earn extra margin. In general, the average price for sugar should be about 480-490 tenge/kg. We need to deal with this,” the Head of Government instructed.

In addition, the Prime Minister stressed the importance of carrying out early work on concluding forward contracts for the supply of fruits and vegetables next year, and also gave a number of other instructions to stabilize prices for socially important food products.

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