Measures of Aktobe region to stabilize prices for socially important food products

In accordance with the instruction of the Head of State K.K. Tokayev, at a meeting of the Majilis of the Parliament of the Republic of Kazakhstan dated 11.01.2022, in terms of restraining prices for socially important food products (hereinafter - NWPT), the Akimat of Aktobe region held negotiations and reached an agreement with large grocery retail chains to keep prices at the level of last year.

In addition, the regional Department of Entrepreneurship and all district akimats of the city of Aktobe conduct daily monitoring of prices for products in social retail outlets.

On January 17 of this year, a meeting of the commission to investigate intermediary schemes along the entire food pricing chain was held, within the framework of which appropriate instructions were given to conduct inspections of retail chains and markets in the city of Aktobe in order to detect excess of the trade premium on the NWPT.

Currently, price containment for socially significant food products is carried out within the framework of the approved Rules for the implementation of price stabilization mechanisms for socially significant food products in the Aktobe region (Resolution of the Akimat of the Aktobe region dated November 30, 2021 No. 391), through the use of the following mechanisms:

- formation and use of the NWPT stabilization fund;

- providing a loan to business entities (revolving scheme).

To implement the mechanism for the formation and use of the stabilization fund, 60.0 tons of rice, 2647.1 tons of potatoes, 60.0 tons of cabbage, 300.0 tons of onions, 533.9 tons of carrots and 100.0 tons of vegetable oil are currently in the stabilization fund, in addition, forward contracts for 437.8 tons of potatoes, 70 tons of onion products have been concluded. It is also planned to purchase 300.0 tons of sugar.

At the end of 2021, by the decision of the Aktobe regional maslikhat, 2 billion tenge was allocated, of which 1 billion tenge was allocated to the stabilization fund (for the purchase of potatoes, carrots, onions, cabbage, sunflower oil, granulated sugar, buckwheat) and 1 billion tenge for the issuance of a loan under the revolving scheme.

Within the framework of the Regional Development Map (CRC – 2022), additional financing was requested from the Republican Budget in the amount of 5 billion tenge for a loan under the revolving scheme.

On January 19 this year, a commission was held to ensure the implementation of mechanisms for stabilizing prices for food products, where business entities were identified for issuing a loan under the "revolving scheme": Ramadan LLP - 460.0 million tenge, NAMK LLP - 20.0 million tenge, Agrofirma Tau LLP - 100.0 million tenge, Martuk Day LLP - 50.0 million tenge, which will supply pasta, dairy products (kefir, milk, cottage cheese, butter), eggs to retail chains and markets of Aktobe at reduced fixed prices during the year.

To stabilize the prices of social bread, grade 1 flour is used, purchased by forward purchase from local agricultural companies. The purchased Flour at fixed reduced prices is supplied to bakeries for baking bread of the 1st grade, which is sold at retail at a price of 84 tenge per loaf.

This year, for regulatory impact on the domestic market, it is planned to allocate 19.0 thousand tons of wheat at a fixed price of 90 thousand tenge/ton to the milling enterprises of the region from JSC NC Food Corporation at a fixed price of 90 thousand tenge/ton by subsidizing reimbursement of expenses incurred by the national company during the sale of food grain. Flour milling enterprises will release grade 1 flour to bakeries for baking social bread with further sale in the retail network at a price of 86 tenge per loaf (550 grams).

In addition, in accordance with the order of the Acting Minister of National Economy of the Republic of Kazakhstan dated March 30, 2015 No. 282 "On approval of the Rules for setting thresholds of retail prices for socially significant food products and the maximum allowable retail prices for them", a resolution of the Akimat of the region is being developed to approve thresholds of retail prices for socially significant food products for the quarters of 2022.

According to general statistical operational information, the index of the main socially significant food products in the region since the beginning of this year as of January 18 is 100.1%, republican (RK-100.3%).

In general, there are sufficient stocks of food products in retail outlets in the region, there is no shortage of food products.