Prices for socially important products and possible risks in the off-season were discussed in the Government

Prices for socially important food products for 9 months of this year and possible risks in the coming off-season were discussed in the Government at a meeting chaired by Deputy Prime Minister Serik Zhumangarin.

Measures taken during the agricultural year gave a positive result: it was possible to stabilize prices for a group of socially important products and reduce the rate of food inflation in Kazakhstan by 3 times compared to last year. According to the results of 9 months of 2023 food inflation totaled 6.2% (19.5% for 9 months of 2022). The price index for socially important food products for the same period of time decreased 6 times, amounting to 3.1% (19.5% for 9 months of 2022).

Such an effect was produced by systemic measures to support the sugar industry, sunflower oil production and the formation of vegetable stocks in the stabilization funds. However, there are now risks of price growth for flour products in the domestic market.

Due to changes in the grain market conditions, wheat prices rose in some regions in mid-September. Several factors had an impact: unfavorable weather conditions for the agricultural industry and a shortage of railcars when transporting grain from Russia for further processing by domestic flour mills.

«As a result of wheat price hike, flour prices have increased in 13 regions», — Aydar Abildabekov, chairman of the MTI Trade Committee, informed the meeting.

On September 27, the Ministry of Trade and Integration together with the Ministry of Agriculture, Prodkorporatsiya, KTZ and akimats held a meeting at which operational response measures were developed to accelerate the delivery of cheap grain from the reserves of Prodkorporatsiya to the regions for its further transfer to flour-mill operators. However, due to various reasons this process has been delayed and only Turkestan region has fully received the necessary volumes of cheap grain. Serik Zhumangarin instructed all regions to speed up and take all measures to close the issue.

Special attention was paid to the situation with sugar, discussing the prolongation of financing agreements for sugar factories. Only 2 regions - Abay and Akmola oblasts - have fully carried out this work. Deputy Prime Minister also instructed to accelerate and complete it as soon as possible.

Vice-Minister of Agriculture Yerbol Taszhurekov reported on the availability of stocks of vegetables in the regional stock funds. He noted that after the September big onion fair in Zhambyl oblast, all regions provided their stocks for more than 100% of the seasonal demand.

For cabbage, in 6 oblasts the contract volumes are below the recommended levels, for potatoes two oblasts are lagging behind, for carrots - one oblast.

Despite the rice fair held last summer in Kyzylorda oblast, only five regions have formed their stocks at the level of necessary seasonal demand. Given the affordable price of domestic cereal (within 400 tenge per kg) and high demand for this product in neighboring countries, Serik Zhumangarin instructed the regions to bring the contracting of agreements on this product to the required level.

Based on the results of the meeting, KTZ was instructed to ensure the priority of supplies of socially important food products within Kazakhstan, as well as imports of vegetables from neighboring countries (Uzbekistan and Tajikistan) during the off-season and winter.

For reference: the growth of flour prices was recorded in Astana, Almaty, Shymkent, Almaty, Atyrau, Zhambyl, Kyzylorda, Kostanay, Karaganda, Pavlodar, Turkestan, Zhetysu and Ulytau regions.