Akimat of WKR: the increase in food prices is objective, but we are trying to contain it

Akimat of WKR: the increase in food prices is objective, but we are trying to contain it

The rise in the price of socially important food products-flour, sugar, sunflower oil-was the subject of discussion at the meeting chaired by the first Deputy akim of WKO. Representatives of relevant departments not only voiced the objective reasons for the rise in food prices, but also offered their possible options for curbing prices for the most popular products among the population.

- The operational headquarters for price monitoring conducts a weekly detour of retail outlets, tracks prices for socially important food products. And today we wanted to show in an open mode what measures are being taken by the regional akimat to curb prices, what system proposals we sent to the Central state agencies, addressed to the Government, in order to stabilize the food market in the region – - first Deputy akim of WKO Mukhtar Mankeev said at the beginning of the meeting, addressing the journalists present in the meeting room.

According to him, the region is working daily to determine the food balance - the presence on store shelves of 19 socially significant food products defined as the basic set for each Kazakh family by the order of the Minister of national economy of the Republic of Kazakhstan.

Now there is no shortage of products in the region. The akimat of the West Kazakhstan region controls wholesale food supplies and prices not only from other regions of the Republic of Kazakhstan, but also from the regions of the Russian Federation. Also in the field of view of local authorities - issues of unhindered border crossing by food suppliers.

Special attention is paid to local food producers. As noted by the Mankeyev, the authorities are ready to render comprehensive support to the business ensuring food security in the region.

– We have signed memoranda with major producers for the supply of 30 thousand liters of sunflower oil monthly for the needs of the region until October 2021, for the supply of 400 tons of grade 1 flour until September 1, 2021, and for the supply of 40 thousand eggs monthly until September 1, 2021. All these companies-local producers - "Beles-agro", "Poyma may combines", "Ural poultry farm" - signed memoranda on price restraint for a year, for which we Express our special gratitude to them, and are ready to consider options for providing them with working capital for production at a minimum percentage, - Mukhtar Mankeev said.

Now, as Deputy head of the regional Department of entrepreneurship and industrial and innovative development Maksat Kulanbayev noted, prices for 6 types of food from the list of socially important products-sugar, flour, sunflower oil, eggs, milk, cottage cheese - are rising in the West Kazakhstan region.

This is mostly due to low yields of sunflower, food and feed grains.

Sugar in the region is imported, the price for it was also formed taking into account the low yields of sugar beet. but already on the territory of the Russian Federation and Belarus.

– In Kazakhstan, sugar is now produced only in the South. And our region imports sugar from Russia and Belarus. Its cost price is now 241 tenge, in fact, wholesale sellers make a surcharge of only 3.7% and sell sugar for 250 tenge. Retailers, in turn, make their own surcharge - no more than 15%,and as a result, we get a price within 270 tenge per kilogram, " Mankeev explained.

According to him, the lack of raw materials has led to the fact that sunflower oil from the local producer "May combines" for wholesale suppliers has increased in price from 370 tenge per liter to 530. This cost of the product was formed due to high prices for raw materials - over the past 2 months, sunflower has almost doubled in price: if last year 1 ton of seeds cost 80-90 thousand tenge, today the commercial price for them has increased to 160 thousand tenge and higher.

The situation is similar for food grains of class 3-4. The increase in flour and pasta is due to the fact that prices for food grains have significantly increased (the speaker did not specify the price limits).

- We constantly monitor the pricing of all food products from the consumer basket – to prevent the facts of unjustified trade margins, - explained Mankeev.

- Entrepreneurs have the right to make a trade mark-up on socially significant goods no more than 15% of the original price. Last year, when we met and talked with local businessmen about this, they agreed to make a surcharge on social goods of no more than 10%. Special thanks to them for that.

Also, in order to contain the growth of food prices, a Stabilization Fund was formed in the region in the amount of 550 million tenge and 10 types of socially significant food products were purchased in the total weight of more than 2 thousand tons.

With the increase in prices for a number of products from the list of SEC " Aqzhayik "(the operator in the work of the stable Fund - ed.) began commodity intervention: through supermarkets "Altyndar", "Zhangir Khan", kiosks "Zhelaev Nan", mini-markets "El yrysy" began to sell sugar from the stable Fund at the price of 193 tenge per kilogram and sunflower oil at the price of 380 tenge per liter.

– In order for agricultural producers to sell their products with a minimum margin, we provided them with retail space at the El yrysy market with a 50% reduced rent, - Maksat Kulanbayev said about other measures taken by state agencies to curb the growth of food prices.

- From the reserves of the region's stable Fund, grade I flour is sold to bakeries at reduced prices, with the condition that they will bake this flour for bread worth 80 tenge per loaf until December 31, 2020.

Currently, working capital is provided for flour mills - in the form of interest-free loans - and the authorities have already signed a contract with IP Taletsky in the amount of 20 million tenge with the condition that the bakery" Zhelaev Nan " will bake bread of the 1st grade for a year at a price not higher than 80 tenge per loaf, and sell 2.5% milk in its branded stalls - no more than 250 tenge per liter and kefir - 270 tenge per liter.

The akimat of the West Kazakhstan region sent a letter to the first Deputy Prime Minister of the Republic of Kazakhstan with its proposals to curb prices. The first of them is the provision of subsidies to producers in the form of differentiated electricity tariffs (note that electricity costs account for more than 4% of the cost of products). Offer entrepreneurs a night rate lower than the day rate, provided that they are engaged in the production of socially significant food products, and thus reduce their utility costs.

Other proposals include a review of the terms of public procurement when forming a stable Fund, as well as the purchase of food grain rather than flour for further processing.

– Now we are making targeted intervention of goods - and we want socially vulnerable segments of the population to have the opportunity to buy socially significant food products from the stable Fund at an affordable price. But these goods, as we see in practice, try to buy up the population with high incomes. Although these products are addressed specifically to vulnerable segments of the population. The stable Fund will not be able to fill up the entire region with cheap oil to provide every family, there is not enough money in the Fund's budget for this, people should understand this and give the opportunity to buy this oil to those who need state support, " Mukhtar Mankeev concluded at the end of the meeting.

Lyudmila Kalashnikova,

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