Ministry of Trade: akimats need to contract the volumes of the 2022 harvest right now

The Ministry of Trade and Integration of the Republic of Kazakhstan calls on local executive bodies to accelerate work on concluding direct contracts with agricultural producers for the supply of 2022 harvest volumes.

Within the framework of the "revolving scheme", preferential financing funds are provided to business entities by a preferential loan (repayable) by the socio-entrepreneurial corporation (hereinafter referred to as the SEC) to business entities (retail chains) with counter obligations at fixed reduced prices for socially significant food products. At the same time, funds should be directed to contracting products from commodity producers.

The Ministry of Trade and Integration has repeatedly appealed to local executive bodies (which distribute the funds of the "revolving scheme") about the need for early forward contracting.

- It is necessary not just to send preferential loans for the purchase of goods "from the field" during the harvest period, but to contract volumes at fixed prices in advance. We urge akimats to carry out this work in advance, now – before the harvest. However, ideally, this should be done before the start of sowing. In this case, the farmer receives cheap money for spring sowing and harvesting, and akimats and trade volumes - guaranteed volumes of supplies of goods at a fixed price at a certain time, – the Trade Committee of the Ministry of Trade and Integration of the Republic of Kazakhstan comments.

 

This year, it was decided to increase the financing of the "revolving scheme" to 100.0 billion tenge. To date, 85.5 billion tenge has already been allocated from local budgets for the "revolving scheme".

The "reverse scheme" is an effective operating market mechanism for influencing pricing.