Zero increase in prices for social food products was recorded last week in Kazakhstan

At a Saturday meeting in the Government chaired by Deputy Prime Minister - Minister of Trade and Integration Serik Zhumangarin, the results of the work of the regions to stabilize food prices for the week were summed up, the results of the activities of the SEC and the akimat of the Ulytau region were reviewed, the preparations for the rice fair in the Kyzylorda region and the process of purchasing the autumn harvest in the stabilization funds for the upcoming winter and offseason. 

Over the past week, the overall price growth index for SSPF in the country amounted to 0%. Moreover, the price of cabbage, buckwheat, eggs and sunflower oil continues to decline. There is a slight seasonal increase in potatoes and carrots associated with the arrival of an early harvest.

At one of the previous meetings, Serik Zhumangarin instructed to check the contracts of akimats concluded under revolving and forward schemes. Acting Chairman of the Trade Committee of the Ministry of Education and Science of the Republic of Kazakhstan Aidar Abildabekov reported on the results of a working trip to the Ulytau region.

«According to the results of the analysis, a number of violations have been identified in the work of local executive bodies and secs. Firstly, the Akimat has not approved the list of SSPF for procurement to the regional stabilization fund. Secondly, as of June 6 this year, supermarkets and stores in Zhezkazgan recorded an excess of threshold prices for 9 items of social products. Thirdly, the SEC has no contracts under the «turnaround scheme». Accordingly, the funds allocated for preferential loans to entrepreneurs do not reach their goal, are used irrationally and lie on deposits. Products purchased through the SEC in the stable fund are not available in stores in the region. With the available reserves in the stable fund for nine items of NWT in January-May of this year, commodity interventions were practically not carried out. Most of the inventory of goods has been postponed to the fall of 2023 and the beginning of 2024. Despite the fact that the total volume of stocks of social products at the SEC is 2,170 tons, the volume of sales in 2023 amounted to only 243 tons», — Aidar Abildabekov said.

In addition, the Department of Trade of the Ulytau region revealed 4 facts of the sale of social products of the SEC to entrepreneurs who resold goods with an inflated trade mark-up. In particular, in March of this year, SEC «Ulytau» concluded an agreement with an entrepreneur for the sale of onions in the amount of 1,500 kg at 190 tenge, which later sold onions with a trade premium of up to 47% instead of the permissible 15%, that is, 280 tenge per kilogram. Another entrepreneur bought cabbage from the SEC at a price of 45 tenge per kg, and sold it for 360 tenge, having increased the price 8 times. Similar facts were revealed during the sale of potatoes and sunflower oil. While in accordance with the legislation on the regulation of trade activities, when concluding contracts for the supply of socially significant food products, the size of the marginal trade allowance must be established without fail. And if this requirement is violated, the transaction becomes invalid.

According to all the revealed facts, entrepreneurs were brought to administrative responsibility under Article 204-4 of the Administrative Code of the Republic of Kazakhstan. According to the actions of Akimat and SEC officials, the material will be sent to the Anti-Corruption Service.

Vice Minister of Agriculture Yerbol Taszhurekov reported on the availability of vegetable stocks in the regions. In general, the work on financing the autumn harvest continues. On the part of the Ministry of Agriculture for potatoes, onions and cabbage, the regions were instructed to bring the contracts to the recommended volumes. 

During the meeting, it was noted that within the framework of the Model Rules, the list of SSPF for the conclusion of forward contracts has been expanded. Forward financing has been introduced for the production of buckwheat, rice, sunflower oil, flour and sugar. Thus, akimats have the opportunity to carry out forward financing of processing enterprises for the purchase of raw materials (rice-shala, buckwheat, sunflower) of the autumn harvest. To do this, as Yerbol Taszhurekov stressed, the regions need to confirm the volume of demand for these goods. 

The meeting also discussed preparations for the rice fair in the Kyzylorda region, scheduled for June 24. All secs of the regions and large producers of rice and social products will take part in it to conclude forward contracts for the autumn harvest.

«The zero growth rate of prices for social products over the past week is a positive result. From the beginning of the year to the end of May, the price growth index for SSPF amounted to 4.2%, by the end of June it should not exceed 4.3%. All akimats need to take comprehensive measures to ensure it. The Ministry of Trade and Integration should take special control over the work of all local executive bodies and SEC «Ulytau», in particular, to stabilize prices for social products», — поручил Серик Жумангарин по итогам совещания.