Kazakhstan opens foreign trading companies to stabilize food prices

JSC "QazTrade" creates foreign companies in order to reduce inflationary pressure on the market, as well as minimize the risk of a shortage of seasonal vegetables and fruits.

According to Nuraly Bukeikhanov, General Director of QazTrade JSC, a joint Kazakh-Uzbek company was registered and opened this week.

"UZKAZTRADE LLC will operate exclusively on a parity basis, that is, the company will be managed by both representatives of QazTrade and our colleagues from UzTrade on the 50/50 principle," Nuraly Bukeikhanov clarified.

The activities of the joint export-import company are aimed at providing the Kazakh consumer with vegetables and fruits at wholesale prices. At the same time, a long chain of intermediaries is excluded. For example, during preliminary negotiations with Uzbek dekhans, an agreement was reached on wholesale purchases of fruit and vegetable products to Kazakhstan.

"It is important to note that the company does not plan to make a profit and is not going to add the so-called commercial margin on imported products. Only a small margin is possible, which will cover the minimum administrative costs. But taking into account the scale of deliveries, it will not have a significant impact on the final price of the goods," the head of QazTrade explained.

According to Nuraly Bukeikhanov, a similar joint Kazakh-Pakistani company is at the launch stage in Lahore. QazTrade also plans to register its own subsidiary in the near future in the city of Dushanbe, Republic of Tajikistan.

Export-import companies with Kazakh participation will supply socially significant products to socially entrepreneurial corporations and major retail chains. At the same time, joint ventures do not have any preferences. The purchase will be carried out only if the price of the offered products is lower than the average market price. This approach will help to keep inflation on certain items of goods.

It is assumed that the joint companies will also export Kazakh flour, fruit and vegetable and fat-and-oil products to Uzbekistan, Pakistan and Tajikistan, but on market terms.

 

 

JSC "Center for the Development of Trade Policy "QazTrade" provides measures of state support to small and medium-sized businesses to reimburse part of the costs of exporting processed goods, sales of Kazakhstan's non-raw materials, contributes to increasing the export potential of Kazakhstan. The sole shareholder of QazTrade is the Ministry of Trade and Integration of the Republic of Kazakhstan.