Zero growth on social food products for the second week in a row

Zero growth on social food products for the second week in a row

Last weekend, Deputy Prime Minister - Minister of Trade and Integration of the Republic of Kazakhstan Serik Zhumangarin held a weekly operational meeting on price regulation for socially important goods in the Kyzylorda region.  It was held with the participation of Akim of the region Nurlybek Nalibayev, vice-ministers of Trade and Integration, agriculture, deputy akims and chairmen of social and entrepreneurial corporations of all regions of the country. The main topics discussed are algorithms for price stabilization, forward financing of agricultural producers in order to establish fixed prices and support export—oriented companies.

«Zero growth in prices for socially significant food products is recorded in Kazakhstan for the second week in a row. Since the beginning of the year, the overall consumer price index for socially important food products has amounted to 4.3%. This indicator should be maintained until the end of the half-year. Price stability was achieved by spot work on the most problematic goods of the socially significant agricultural goods group», — First Vice Minister of Trade and Integration of the Republic of Kazakhstan Arman Shakkaliyev said. According to him, in some regions there is deflation and a decrease in the price index for SSAG.

He also added that an analysis of contracts concluded between akimats and secs is currently being carried out, the most active, socially oriented producers are being identified to attract them to the new price stabilization algorithm. For the goods that give the greatest increase in the price index — beef and eggs — MTI has developed a mechanism for issuing loans to producers within the framework of a revolving scheme. Stocks of volumes must be sold exclusively through the signing of contracts with manufacturers on the terms of fixing prices — both purchasing for the entire term of the contract, and retail.

Vice Minister of Agriculture Yerbol Taszhurekov presented the results of work on the formation of reserves of regional stabilization funds of products for the autumn-winter period. Contracts have already been signed for the supply of 94.5 thousand tons of autumn potatoes to the stabilization funds, 27.4 thousand tons of carrots, 27.7 thousand tons of onions, and 19.1 thousand tons of cabbage.

According to the Vice Minister of the Ministry of Agriculture, the list of SSAG has been expanded for the possibility of concluding forward contracts, forward financing has been introduced for the production of buckwheat, rice, sunflower oil, flour and sugar.

«The preliminary amount of forward financing is 18.7 billion tenge. There are 35.6 billion tenge on the accounts of the SEC, which can be used for these purposes. In order to involve more producers in the program and exclude intermediaries, 70% of the financing will be allocated directly to agricultural producers and processing enterprises», — said Yerbol Taszhurekov.

A. Shakkaliyev also noted that the new Rules for the operation of trade markets in the Republic of Kazakhstan came out in April this year. During this time, MTI conducted extensive explanatory work with market owners in all 20 regions of the country, and it continues on an ongoing basis.

Within the framework of the National Project for the Development of Entrepreneurship for 2021-2025, it is planned to subsidize the interest rate on projects for the construction, expansion, modernization of modern retail facilities. However, to date, no application has been received from the business for state support for these purposes.

At the same time, modernization of 15 markets is planned for 2023: 6 in Almaty, 1 in Shymkent, 2 in Zhambyl and 6 in Turkestan region. At the moment, modernization work in the regions is lagging behind the deadlines set in the Roadmap.

The General Director of JSC «QazTrade» Rustam Asulbek spoke about the development of the export potential of the Kyzylorda region.

By the end of 2022, the turnover of processed products in the region reached $323 million, of which $143 million was exports.

«Today our task is to increase the export opportunities of representatives of small and medium—sized businesses of the Kyzylorda region. There are 67 thousand small and medium-sized enterprises operating here. Kyzylorda not only provides the whole country with rice, but also occupies a strong place in the export of food products. Of the $143 million exports of processed products, rice supplies account for almost 35%. The presence of local production bases for rice becomes an excellent condition for increasing the export of this product abroad», — the head of «QazTrade» noted.

Besides rice, the main export products of the Kyzylorda region include uranium (40.8% of total exports), cement (7.3%), fish fillets (5.8%), salt (3.5%).

The main importers of Kyzylorda rice are Tajikistan, Russia, Azerbaijan and Turkmenistan.

During the meeting, Serik Zhumangarin criticized the work of the SEC and local executive bodies on contracting vegetables, identifying unnecessary intermediaries and modernizing markets.

«The socio-entrepreneurial Corporation is not doing its job to stabilize prices, every time we force you to saturate the markets of your regions. You implement one-time measures, forgetting about the system ones. During the analysis of your contracts, unpleasant facts are revealed. So, after the inspection, the materials on the Ulytau region had to be transferred to the anti-corruption service. I instruct you to conduct an analysis of price stabilization activities to the fullest extent, make the facts of violations public, and transfer the materials to the appropriate authorities for investigation. I instruct the deputy akims of the regions to work more closely with agricultural producers and wholesalers, to actively use forward purchase mechanisms, and to make direct contact with producers. There are all possibilities for this – this was clearly demonstrated by the last rice fair in Kyzylorda. Such fairs will be held in other regions», — the Deputy Prime Minister said.