The increase in vegetable prices is the result of the regions' shortcomings – B. Sultanov

Deputy Prime Minister - Minister of Trade and Integration Bakhyt Sultanov held a meeting in Almaty with the akimats of the regions to curb the growth of prices for socially important food products.

Over the past week, the increase in prices for NWT amounted to 0.6%. Carrots rose the most by 2.8%, onions by 2.6%, potatoes by 2.2%, sugar by 1.8%, flour by 1.3%. Cabbage has fallen in price – by 1.0%, sunflower oil and egg – by 0.1%.

In the context of regions, the maximum price increase for the week was allowed in Almaty by 1.2%, in Kostanay and East Kazakhstan regions - by 0.9%.

The Deputy Prime Minister noted that the akimats of the regions are working poorly to organize the supply of early vegetables from the Turkestan region. In addition, the retail trade allowance is not controlled at the proper level.

"The increase in vegetable prices is the result of a missed opportunity for early contracting and fixing prices for vegetables," B. Sultanov said.

So, in particular, according to the Akimat of Almaty, a memorandum was signed for the supply of early cabbage in the amount of 550 tons at 140 tenge from the Seilkhan farm. However, the peasant farm did not confirm the act of prepayment.

The Minister of Trade also criticized the work of akimats on monitoring the formation of the price chain from the field to the counter. For example, wholesale cabbage from the fields of Zhetysai district of Turkestan region is sold at 160-170 tenge. Logistics to Almaty increases the cost of cabbage to 190 tenge. Taking into account the trade surcharge of 15%, the price on the shelves of Almaty should be no more than 220 tenge. However, in fact, its retail price is fixed at the level of 280 to 400 tenge.

A similar situation is observed in other regions.

In East Kazakhstan, the cost of cabbage should be 240-250 tenge with a 15% trade surcharge. In fact, the retail sale price is on average 310 tenge, and the trade premium is 47.6%.

In Kostanay region, the wholesale price of cabbage (including the cost of delivery from Turkestan region) is 205 tenge, the retail price ranges from 412 to 500 tenge.

"At such prices, the weak organization and shortcomings of akimats are visible to the naked eye. We understand that there are a lot of shops. However, high-quality explanatory work should be organized, notifications should be distributed with the requirement to comply with Article 9 of the Law "On Regulation of Trade Activities" so that stores do not exceed the 15% trade surcharge. If the sellers do not comply with the legislation even after the explanations, apply administrative measures," the Deputy Prime Minister said.

In general, in Kazakhstan over the past week, 29.2 thousand stores "at home" or 69.6% of retail objects were covered by measures to control compliance with the maximum permissible trade allowance. 553 violations were detected. As a result, retail facilities voluntarily reduced surcharges to 15%.

Since the beginning of the month, 985 cases of violation of the trade allowance have been identified, of which 7 violations are repeated.

The Deputy Prime Minister instructed akimats to speed up work on concluding forward contracts for the supply of Kazakhstan's early vegetables from the Turkestan region. And also to tighten control over the strict observance by the objects of trade of the maximum permissible trade allowance for socially significant food products.

In addition, Bakhyt Sultanov noted that in the period from the second decade of May to June, the gross harvest of early potatoes in the amount of 174 thousand tons is expected. During this period, the wholesale price for the field will be about 150 tenge/kg.

"Given that the physical availability of potatoes is ensured, akimats need to take all measures to prevent an increase in potato prices in terms of trade surcharges and intermediary chains," Sultanov said.

Similar instructions are also given for other early vegetables.

The Deputy Prime Minister recalled that akimats have a list of farmers who are ready to conclude a contract with the farmer's obligation to supply autumn agricultural products from October 2022 to May 2023 at a price of 110 tenge, including storage. However, no region has been contracted to date.

Pavlodar and Karaganda regions were instructed to make lists of agricultural enterprises wishing to conclude a contract now and receive money for potatoes and carrots already at the stage of sowing for the conclusion of forward contracts with the regions. Zhambyl, Turkestan and Almaty regions – to make proposals for forward contracts for autumn onions and cabbage.

"If the moment is missed now, during the off-season we will again face price increases. Therefore, I emphasize the importance of this issue," B. Sultanov said.

According to the Ministry of Agriculture, as of April 28, NWPT reserves in the republic amount to about 816 thousand tons, including reserves under the "revolving scheme" – 118 thousand tons, stable funds – 36 thousand tons and forward contracts for 48.4 thousand tons have been concluded.