Early onions, large intermediaries, harvest purchases for spring 2024

Almost the entire annual cycle of providing the country's residents with vegetables and further measures to stabilize prices for social food products were discussed at a meeting chaired by Deputy Prime Minister-Minister of Trade and Integration Serik Zhumangarin.

According to the results of March-April 2023, the total price increase for socially significant products amounted to 0.6%. Of these, in March – 0.4%, in April – 0.2%. Stable dynamics of stabilization and at times lower prices are observed for buckwheat, sunflower oil, poultry meat, eggs, sugar.

At the same time, the end of the off-season traditionally makes itself felt by an increase in prices for fruit and vegetable products. The decline in last year's harvest stocks and the appearance of early vegetables on the market was reflected by a slight increase in prices for onions in 12 regions and cabbage in 15. Over the past week, the total increase in prices for cabbage was 3.8%, onions – 1.4%, carrots – 0.3%, potatoes – 0.1%.

«The increase in vegetable prices is largely due to a decrease in the rate of unloading and the appearance of early vegetables on the market. According to the results of monitoring, we see that only 12.2 thousand tons of onions were sold on the market, despite the fact that 19.1 thousand tons of this vegetable were released from stocks. The output of cabbage to the markets amounted to 15 thousand tons, and only 9 thousand tons were sold», — Acting Chairman of the Trade Committee Aidar Abildabekov said.

In early March, the Ministry of Trade and Integration organized a trip to Tajikistan by representatives of regional akimats and regional Socio-entrepreneurial corporations, during which agreements were signed on the supply of early imported onions in the amount of 6 thousand tons at the optimal market price.

«The regions were offered to purchase onions from Tajikistan by directly concluding contracts with Tajagropromexport, but they refused, stating that they were ready to purchase this vegetable after customs clearance, directly from the territory of Kazakhstan. Then the authorized economic operator «KTZ Express – KTZE Commerce», was connected to the early purchase of imported vegetables, which signed a contract with Tajagropromexport for the supply of vegetables to Kazakhstan. But even after that, only 8 regions with a total volume of 220 tons of onions were contracted last week. The city of Almaty, Turkestan, Karaganda and North Kazakhstan regions are at the signing stage. At the planning stage – Social and entrepreneurial corporations Zhetysu. And the socio-entrepreneurial corporations of Aktobe, Almaty, Zhambyl, Mangystau, Kyzylorda regions, Almaty and Shymkent do not show interest in concluding contracts and providing the regions with early onions at an affordable price», — Aidar Abildabekov continued.

At the meeting, the results of the analysis of the chain of intermediaries in the sale of socially significant agricultural goods were considered. To date, the Trade Committee has identified 22 risks of exceeding the trade allowance.

«The meeting reviewed the results of the analysis of the chain of intermediaries when "In some regions, an abnormal increase in sunflower oil prices was recorded. Based on the results of a detailed analysis of the electronic invoices of five manufacturers, the risks of violation of the trade mark-up were identified by large wholesalers of «KaIs Invest» and «Zhazyk Group» LLP, which sold sunflower oil with a trade mark-up of 20 to 40%. Information on all identified risks has been transferred to the Departments of Trade and Consumer Protection for taking measures», — Aidar Abildabekov informed.

Vice Minister of Agriculture Yerbol Taszhurekov reported on the balance of the main vegetables in the regions. In general, there is a positive balance for potatoes in the republic (22.6 thousand tons), the available reserves will meet the needs of the population until the end of May. In June-July, early potato harvesting will be carried out in Turkestan and Almaty regions, and this volume will be enough to cover the needs of the country before the autumn harvest. According to akimats, carrot stocks in the republic amount to 32.5 thousand tons with a monthly demand of the urban population of 24.4 thousand tons. Work is underway to conclude forward contracts for the supply of autumn harvest vegetables, which is necessary to stabilize prices in the off-season of 2024.

«Contracts have already been signed for the supply of 101.2 thousand tons of autumn harvest vegetables, including potatoes – 57 thousand tons, carrots – 14.6 thousand tons, onions – 18.7 thousand tons and cabbage – 10.9 thousand tons», — Yerbol Taszhurekov reported.

Following the meeting, Serik Zhumangarin once again focused the attention of all participants on the need for operational work to stabilize the growth of prices for early vegetables, dairy products. He instructed the Ministry of Agriculture to organize a meeting with dairy producers next week.

«In the chain of sales of sunflower oil and chicken eggs, large intermediaries have appeared again. The Agency for the Protection and Development of Competition needs to eliminate unproductive intermediaries in these markets. I also instruct you to analyze the contracts of the regions with the trading companies with which they work under revolving schemes. Since last year we have been talking about switching to forward purchases directly from manufacturers, but many still prefer traders. Based on the results of the analysis, we will find out how effective it was in stabilizing prices», — Serik Zhumangarin summed up.