To reduce food prices in Kazakhstan, producers are supported

Chairman of the Trade Committee Yerzhan Kazanbayev told about the assistance provided to commodity producers and business entities in order to reduce and stabilize food prices.
As he noted, the trade chain consists of a manufacturer-logistics-store. Everyone's margin is limited to a minimum level of 10%. At the same time, everyone bears the costs that need to be compensated.
In addition, last year's drought, a sharp rise in prices for spare parts, fuels and lubricants, mineral fertilizers and pesticides lead to additional costs for manufacturers.
- The manufacturer cannot sell below the cost of production. 40% of the population live in rural areas and feed the city. We will lower the price below production and there are risks that our farmers - rural residents will remain without income," said the chairman of the trade committee.
Delivery from the field to the city is also a cost: fuel, depreciation of cars, etc. At the store, for example, it is the cost of electricity, rent and wages of employees. Therefore, fixing prices for a long time will harm all people who work in the production and trade of socially significant food products.
Taking into account all factors, government agencies are working to stabilize prices through the use of market mechanisms and to reduce prices through the support of producers.
In this regard, to support the subjects of the agro-industrial complex, an increase in preferential loans to farmers from the republican budget through the Ken Dala program in the amount of up to 140 billion tenge is being worked out for the cultivation of agricultural crops, including for the production of early vegetables and socially significant goods.
The issues of providing agricultural producers with cheaper diesel fuel for spring field work are being resolved.
Also, the Ministry of Agriculture is systematically working on import substitution of the main types of food products.
Recall that in order to systematically solve the existing problems in pricing, the Ministry is working on the creation of a National Commodity Distribution System in the form of the infrastructure of the ORC network, which will consist of 24 objects.
As it is noted, the goal is not to build 24 vegetable storages, but to create a complete system infrastructure of a full cycle - from the manufacturer to retail.
This will significantly expand the market for agricultural products and create a separate economic cluster that will bring the producer closer to the consumer.