Ministry of Trade: How will the development of trade infrastructure affect prices?

Today, on May 27, 2021, the Minister of Trade and Integration Bakhyt Sultanov spoke about this and in general about the importance of the National Commodity Distribution System (CDS).

The creation of the NTS is carried out within the framework of the development of trade infrastructure – one of the directions of the National Trade Development Project for 2021-2025.

During the round table on the creation of the National Commodity Distribution System (CDS), regular discussions were held with the participation of deputies of the Majilis of the Parliament of the Republic of Kazakhstan, representatives of state bodies, public figures and business representatives.

As Bakhyt Sultanov noted, one of the main tasks of creating the NTS is to stabilize prices.

"The increase in prices for socially important food products is caused by high losses, inefficient logistics links and intermediaries.

The cost of losses (up to 30%) of producers, intermediaries, and trade sectors is eventually transferred through the final price to the consumer.

The current chaotic and high-cost supply chain imposes additional logistics costs on prices, " the minister listed the reasons that the developed trade infrastructure can eliminate.

According to the head of the Ministry of Trade, " the consolidated purchasing power will reduce the price. A unified information system will ensure efficient logistics from the manufacturer to the buyer."

Modern trade infrastructure will help to contain the growth of prices for socially important food products and ensure predictability and transparency of pricing.

In addition, the Minister also added that the CDS" will integrate an information system that we are implementing with the participation of the public – this is the price monitoring system "Dosmart" and a number of other systems that will allow people to see that a particular store has a more favorable price. A number of such solutions will allow the system to work more efficiently. "

According to the Minister of Trade, a single system will allow you to see the full balance of production and movement between regions, as this also affects pricing.

Speaking about the projected economic effect, the minister noted the possibility of reducing the costs of the population for the purchase of socially important food products by limiting the retail margin for resident chains to 5% (with a traditional margin of ~10%), which will allow for the project period (14 years) to bring more than 16 billion tenge.