Cabbage and potatoes are in the price. What could have affected the rise in price and demand?

Aidar Abildabekov, Deputy Chairman of the Trade Committee of the Ministry of Education and Science of the Republic of Kazakhstan, told about internal factors that have become the main reason for the increase in food prices at the CCS site.

In 2019, Kazakhstan had a good harvest, with high demand for it from outside, especially from Russia. In 2020, due to the pandemic, a lot of products "remained in the fields" unassembled. The crop failure of vegetables in Russia in 2021 led to an increase in demand, primarily for cabbage and potatoes, and that, accordingly, affected the rise in price of these products. In addition, the high growth in cabbage prices is due to volatility. The reason for the price increase at the moment is the seasonality factor, which is associated with an increase in storage costs and a reduction in inventory. Another factor in the price increase was the supply of fresh products from Uzbekistan and Pakistan.

"The rise in the price of feed due to drought is the reason for the increase in prices for beef, chicken, dairy products and eggs. The increase in excise taxes on fuel and lubricants in 2021 was also one of the reasons for the increase in food prices. A small increase in utility tariffs, an increase in prices for raw materials, fertilizers, veterinary drugs and logistics also affect the growth of prices for socially important food products. The "January events" had a certain impact on the price increase. Currently, the increase in sugar prices is due to the geopolitical situation in the world, related to the events in Ukraine and the ban on sugar exports from the Russian Federation. Russia was the main supplier of sugar, 58% we imported," Aidar Abildabekov said.

He also recalled that Kazakhstan is a country with a market economy and, in connection with the Law "On Regulation of Trade Activities", prices for goods are determined by subjects within trade independently, with the exception of retail prices for socially significant food products. The list consists of 19 products. At the same time, the permissible size of the marginal trade allowance is no more than 15% of the manufacturer's selling price or the supplier's purchase price.