For the first time in Kazakhstan there is a deflation of prices for vegetables

Over the past week, prices for socially important vegetables have decreased by -0.3%. This is the result of commodity interventions launched by the government on February 1, 2023.

The results of the price situation for the week for socially significant products and measures to strengthen the trend for further decline were considered on March 18 at a meeting chaired by Deputy Prime Minister - Minister of Trade and Integration Serik Zhumangarin.

- For the second week in a row, prices for social food products are declining in the Mangystau region (-0.1%), this week there is a decrease in Turkestan (-0.1%), - said Acting Chairman of the Trade Committee of the Ministry of Trade and Integration Aidar Abildabekov.– At the same time, almost all social vegetables have fallen in price in the Turkestan region, and prices for potatoes and cabbage have decreased in the Mangystau region.

The number of points of sale of vegetables in the country at social prices increased from 682 at the initial stage of interventions to 1015. In general, due to lower prices for vegetables, there is a slowdown in the growth of prices for socially significant food products (SSFP) in almost all regions. We suggest that all secs prolong their work with these outlets, and then for the next off-season there will be a database of retail facilities in each region that affects pricing.

The overall price index for SSFP increased by 0.1% over the week, which is a record low level since the beginning of the year (for the same week in 2022, price growth was recorded at 5.6%). The increase is due to some increase in the prices of dairy products in the total basket of SSFP (butter, kefir, cottage cheese, milk). Promptly, MTI and the Ministry of Agriculture held meetings with dairy producers, within the framework of which agreements were reached to maintain current prices.

The meeting also discussed the progress of the regions' work on contracting the autumn harvest. These contracts, according to the new model rules for the implementation of price stabilization mechanisms for SSFP, were to be concluded before February 1, 2023. On the part of the Trade Committee, it was proposed to contract autumn onions for 62-70 tenge, and taking into account storage until spring - 90 tenge.

- It is necessary to work systematically and very actively, there is simply no other way. - Serik Zhumangarin emphasized. – We are seeing the results of the fall inventory breakdown, for the first time in the off-season, the deflation of vegetable prices began. And this work should be continued: those who have few stocks for individual vegetables, agree with the regions where there are surpluses, the Ministry of Agriculture will provide you with this information, and ensure the stability of vegetable supplies at indicative prices. Accelerate the work on contracting the early and autumn harvests of this year, from the autumn stocks are formed for the spring of 2024. We must keep food inflation at the current level and create stocks at low prices for next year.