Reducing inflation and providing citizens with products at affordable prices: Alikhan Smailov on the tasks of the Government in 2023

On Saturday, December 24, in the Digital Office of the Government, Prime Minister of the Republic of Kazakhstan Alikhan Smailov held a meeting on price restraint for socially important food products (SIFP).

First Vice-Minister of Trade and Integration Arman Shakkaliyev said that since the beginning of the year SIFP has risen by 22.3%, by the end of the week – by 0.2%. In particular, onion prices increased by 1.7%, cabbage – by 0.9%, rice – by 0.8%, cottage cheese – by 0.7%, eggs and milk – 0.5%. The largest increase in prices for SIFP since the beginning of the year is noted in Ulytau region (31.4%) and Astana (25%).

According to him, the work of regional commissions to combat intermediary schemes throughout the pricing chain has now been systematized, their compositions have been strengthened. Arman Shakkaliyev noted that due to the activities of unproductive intermediaries through «4-5 knees», prices for retail products are increasing by almost 60%. In this regard, the regional commissions are focused on the analysis of wholesale supply schemes, logistics and warehouse chains, as well as on the adoption of response measures.

In addition, work with stores «at home» has been strengthened in terms of controlling the permissible trade allowance (15%) and the system of traceability of goods in the republic is being improved to ensure market transparency.

Minister of Agriculture Yerbol Karashukeyev spoke about the ongoing work to provide the country's domestic market with its own food products, forward financing of vegetable production, control over the fulfillment of counter obligations by commodity producers receiving state support.

First Deputy Chairman of the Agency for the Protection and Development of Competition of the Republic of Kazakhstan Rustam Akhmetov reported on the measures taken by the antimonopoly response to the facts of unjustified increase in food prices. Thus, five investigations were appointed due to abuse of a dominant position and anticompetitive concerted actions against a number of poultry farms, 90 notifications were issued to wholesale suppliers of sugar, chicken meat and dairy products in the SIFP markets, 19 investigations were appointed against producers of eggs, sugar, dairy products and trade markets.

The Prime Minister noted that in order to increase the effectiveness of price restraint, the work of the main state mechanisms was reformatted. In particular, the approaches to the «reverse scheme» have been revised: financing is now mainly aimed at supporting manufacturers, not retail chains. In addition, the work of regional commissions to investigate intermediary schemes has been restructured and strengthened, rules have been agreed with businesses on approving maximum permissible retail prices that will not infringe on the rights of producers.

«Orders have been brought to the regions to conclude contracts for both vegetables and other commodity items most susceptible to price fluctuations. At the same time, due to the formal approach and non-fulfillment of planned measures by some regions, there is an increase in prices», — said Alikhan Smailov.

The Prime Minister pointed out the need to ensure the conclusion of contracts for vegetables in an accelerated mode to curb prices in the off-season, as well as the remaining regions to conclude contracts with sugar factories.

«Systematic work to saturate the domestic market with its own food products and create conditions for their storage during the off-season is of great importance. We need timely measures on the part of regional commissions to investigate intermediary schemes. Our main task is to provide citizens with essential goods at affordable prices», — he stressed.

Summing up the meeting, the Prime Minister instructed to ensure the full implementation of new approaches to price restraint in order to stabilize the situation on the eve of the New Year, as well as to work out the construction of additional modern vegetable storages within a month.

«High rates of inflation do not allow the economy to develop steadily and affect the social well-being of citizens. In this regard, the work to reduce it by 2 times next year is already a matter of national security. There should be no formalism in this work», — he stressed.

The meeting also discussed issues of further implementation of the «G4 Сity» project in the Almaty region. The Prime Minister demanded to accelerate the creation of a special economic zone on the territory of «G4 Сity», take the necessary measures to approve the city's master plan and develop urban planning documents, as well as update the roadmap for the implementation of the project as a whole.