MEASURES OF ZHAMBYL REGION TO STABILIZE PRICES FOR SOCIALLY SIGNIFICANT FOOD PRODUCTS

In accordance with the instruction of the Head of State K.K. Tokayev, at the 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 Zhambyl region held negotiations and reached an agreement with large grocery retail chains to keep prices at the level of last year.

The Department of Entrepreneurship conducted an analysis of the work of large and medium-sized stores, which showed that most of the goods are delivered through 2-3 intermediary links. At the legislative level, it is impossible to exclude intermediary chains or apply any regulation to them.

Stocks of stores and wholesale warehouses do not allow to influence prices, stores are purchased 2-3 times a week at different prices, which leads to an increase in prices. Purchasing in large batches for 3-5 months directly from large wholesale warehouses will allow stores to reduce prices by eliminating intermediary chains and fix prices due to large purchase volumes.

The Department of Entrepreneurship and akimats of districts are also constantly working to control the size of the trade allowance.

Monitoring groups consisting of representatives of the territorial body of the State Revenue Committee, local executive bodies, veterinary and phytosanitary services, deputies, public organizations are working to strengthen control over fruit and vegetable products, the movement of goods and the use of cash registers by all trade entities.

On January 13 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 analyze the import and export of food products in the region, as well as to analyze existing supply chains of NWT to the city of Taraz in order to identify unnecessary intermediary chains.

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 Zhambyl region (Resolution of the Akimat of the Zhambyl region dated November 07, 2019 No. 248), 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, the stabilization fund currently has rice, potatoes, cabbage, onions, carrots, vegetable oil, buckwheat, sugar and flour.

To stabilize the prices of social bread, flour is supplied at fixed reduced prices to bakeries for baking bread of the 1st grade, which is sold at retail at a price of 90 tenge per loaf.

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 28 is 101%, republican (RK-100.7%).

In order to regulate and stabilize prices for the main socially significant types of products, the following activities will be carried out:

1) organization and coordination of the process of providing large retail chains of the region with direct supplies from Kazakhstani food producers and large wholesale warehouses, that is, the control and establishment of the shipping system from the manufacturer to the store will be carried out through financing under the reverse scheme of wholesale suppliers and retail chains;

2) creation of a stock of food products with a long shelf life of up to 5 months.

To support socially vulnerable segments of the population in the region, 32 social stores are currently operating in the region (16 stores in Taraz and 16 stores in district centers), where the population has the opportunity to purchase socially significant food products at below-market prices.