Measures of the Mangystau 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 Mangystau 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 Trade and all district akimats conduct daily monitoring of prices for NWPT.

On January 14 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 region in order to identify excess of the trade allowance for NWT.

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 Mangystau region (Resolution of the Akimat of the Mangystau region dated October 2, 2019 No. 213), through the use of the following mechanisms:

- formation and use of the NWPT stabilization fund;

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

For the formation of the regional stabilization fund, 1 billion tenge was allocated from the local budget last year (500 million tenge for the purchase of goods, 500 million tenge for lending to entrepreneurs). For 2022, it is planned to allocate another 1.5 billion tenge. As a result, the regional stabilization fund has formed stocks of NWT for 7032 tons for 17 types of goods.

To stabilize the prices of social bread, Grade 1 flour purchased by forward purchase from a local flour mill is used. 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 80 tenge per loaf.

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 4th quarter 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 25 is 100.8% (RK-100.7%).

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