The Head of State Kassym-Jomart Tokayev, in his address to the people of Kazakhstan on the introduction of the state of emergency, instructed to approve the objectively necessary list of socially significant goods, according to which state regulation of prices is carried out. Each akim of the region needs to establish a real account of the availability of goods of primary demand; panic and excitement around essential goods should not be allowed. Akims of the regions should establish interaction between themselves to control interregional flows of goods and eliminate local deficits. It is necessary to ensure the availability of sufficient reserves, work out mechanisms for bringing them to the shelves, strictly control prices and exclude speculation.
According to the Committee on Statistics, the price index for socially significant food products for the week from April 7 to April 14, 2020, increased by 0.4%. Since the beginning of the year, the largest price increases have been set for vegetables (potatoes, onions, cabbage, carrots) and sugar. The main reason for the increase in prices was the seasonality and appreciation of production factors.
There is currently no import ban. Goods are imported as before. Trade relations did not stop. Goods that are not exported are sold domestically.
In terms of regions, the highest price increase occurred in Pavlodar region, the cities of Nur-Sultan and Almaty. In cases of exceeding the maximum price for a particular product, akimats make a decision on the prevention or enforcement of penalties for subjects of internal trade.
In case of exceeding the limit prices:
- in the retail market, in accordance with Article 729 of the Code of Administrative Offenses, the Entrepreneurship Department of the local executive bodies will impose fines in accordance with Article 202 of the Code of Administrative Offenses in the amount of 100 MCI or 277.8 thousand tenge (repeated violation – 200 MCI or 555.6 thousand tenge);
- large producers and suppliers, the territorial departments of the Committee will investigate the facts of rising food prices with the corresponding imposition of fines under article 159 of the Code of Administrative Offenses in the amount of 3% to 5% of income (revenue) obtained as a result of monopolistic activities, with confiscation monopoly income in no more than one year.
In order to prevent violations of the law in the field of protection of competition in the food market, explanations of the legislation of the Republic of Kazakhstan in the field of protection of competition are carried out to prevent unjustified price increases with manufacturers and wholesale suppliers.
Since the beginning of 2020, the antimonopoly authority issued 172 notifications to market entities on the production and sale of grocery, fruits and vegetables and meat products, as well as 1 warning.
In addition, 10 investigations were appointed on the grounds of violation of the legislation of the Republic of Kazakhstan in the field of protection of competition.
April 3, 2020, a joint order of the Ministry of Trade and Integration, Ministry of National Economy and the Ministry of Agriculture established price ceilings for 9 socially significant food products (flour, bread, horns, buckwheat, rice, beef, eggs, sunflower oil, salt). On April 10, the Head of State instructed to optimize the mechanism of price regulation along the entire pricing chain.
According to the operational data of the regions, as of April 20, 2020, the republic has reserves of 876 thousand tons of various food products, including 37.0 thousand tons in stabilization funds, 304.1 thousand tons in manufacturing enterprises, and in warehouses – 197.6 thousand tons, in retail chains – 338.1 thousand tons. In addition, there are 352 million eggs and 4.0 million tons of food wheat.
The availability of available stocks of foodstuffs for actual consumption for different types of products ranges from a week to several months. At the same time, their stocks are constantly replenished and therefore a deficit in them is not expected.
According to the Ministry of Agriculture, in general, in 2020, the total sown area of ??crops will be 22.5 million hectares, which is 138 thousand hectares more than last year. As of today, all preparatory work has been carried out. About 2.5 tons of seeds are poured, which provides 100% demand, the readiness of agricultural machinery is 98%, 390 thousand tons of cheapened fuels and lubricants were allocated.
So, the price per ton of diesel fuel is reduced from 175 tenge per ton to 165 tenge per ton, i.e. for 10 tenge. A loan of 70 billion tenge from the republican budget with an interest rate for ultimate borrowers of not more than 5%. To date, this loan has been disbursed by 99.6%, about 2.37 thousand agricultural producers have received loans totaling 69.7 billion tenge.
In addition, within the framework of the Economy of Simple Things program, an additional 100 billion tenge are allocated for spring-field and autumn harvesting. The rate for the final borrower will not exceed 6% per annum. These funds will be credited by the Agrocredit Corporation directly through second-tier banks and credit partnerships.
April 17, 2020, Prime Minister Askar Mamin instructed the Ministry of Agriculture, together with akimats of the regions, to daily monitor food supplies, the balance of its production and interregional flow for timely response to a possible shortage of certain types of goods.
We have approved price caps for the 9 most socially significant food products. An appropriate price containment mechanism is in place. However, in a number of regions, marginal prices for some socially significant food products are exceeded. I instruct akimats to stop such facts and take this issue into personal control," Mamin said.
The prime minister instructed to ensure the necessary food reserves in the regional stabilization funds.
Was there an export ban?
At the initial stage, a ban was imposed on the export of vegetables such as cabbage, onions and carrots. The ban was imposed for reasons of food security of the country, providing its own population with sufficient food. This was due to the small stock in the country of the carryover of the old crop. It was necessary to reach the new crop. As soon as they began to harvest a new crop in the south of the country, all bans were immediately lifted. Today, onions, cabbage and carrots are exported without any problems, all the necessary documents are drawn up in a timely manner. At the same time, the ban was valid for only a month.
The ban or restrictions on the export of grain and flour affected only food wheat and wheat flour, which are mainly used for baking purposes. In early March, there was a boom in demand from other countries for Kazakh wheat and flour. There was a real danger of exporting the entire volume of wheat and flour that was planned to be exported before the new harvest, for two months, March and April of the current year. The volume of applications for shipments grew daily in geometric proportions. Applications were submitted even by companies that had never before exported wheat and flour. After quite lengthy consultations with representatives of the Union of Grain Processors and the Grain Union of Kazakhstan, it was decided to lift the ban on the export of flour and to quote export volumes of food wheat and wheat flour. At the same time, mills and grain farmers committed themselves to direct a certain part to providing the domestic market at fixed prices.
For example, according to statistics as of April 1, 2020, the reserves of all grain are 7.8 million tons, of which the volume of food wheat is 6.1 million tons. Of this volume, 1.1 million tons are intended for seed purposes, 4.6 million tons for domestic consumption (processing into flour and deep processing), 0.4 million tons for fodder.
If the restriction on the export of edible wheat and wheat flour is removed, this volume will be shipped until the summer.
Currently, quotas have been introduced for the export of food wheat and wheat flour. To obtain a quota, each exporter must sell 30% of the volume declared for export on the domestic market at a fixed price. The indicated volumes will be pledged by Food Contract Corporation JSC for a month and will be sold at the request of the regional akimats.
The main objective is to provide flour mills with food grain and bakeries with flour in order to prevent the increase in prices for social bread.
Currently, the Food Corporation pledges 60 thousand tons of food wheat at a price of 88 thousand tenge per ton, 21 thousand tons of wheat flour at a price of 120-130 thousand tenge per ton, depending on the region.
Today, the market price for food wheat is 89-90 thousand tenge per ton, flour – from 135 thousand tenge to 140 thousand tenge per ton.
Forward purchase of agricultural products
The forward purchase will finance the acquisition of 365 thousand tons of agricultural products, namely wheat, barley, oilseeds and buckwheat. The total amount of necessary budgetary funds for the procurement will be 24.5 billion tenge, of which 17.1 billion tenge will be sent as an advance payment.
In addition, the regions have signed forward contracts for the supply of foodstuffs to the stabilization funds in the amount of 7.5 thousand tons. Also, under the "revolving scheme" 34.4 thousand tons of food were recorded.
The main emphasis will be placed on financing sown areas, taking into account diversification and coverage of a larger number of small and medium-sized farms with land sizes from 500 hectares to 5 thousand hectares. Thus, for the allocated 24.5 billion tenge, agricultural work on 4 million hectares will be carried out taking into account a four-field crop rotation or 20% of the total sown area.
The financing mechanism will be similar to the previous one. So, guarantees will be accepted as second-tier banks. This will solve the problem of lack of liquid collateral for farmers.
What is the situation in the capital and in the regions?
In order to provide food and an uninterrupted supply of goods at the entrances to Nur Sultan, a "green corridor" operates for freight transport.
Since the introduction of quarantine, 4,771 trucks have entered the city with a total output of 51,786 tons, of which 21,829 tons are food products, which correspond to the current sales volumes of networks and markets. Today, the city has enough reserves.
Only socially significant food products for 19 positions have 30 thousand tons of products, of which 25 thousand tons of products are stored in warehouses and vegetable stores.
To replenish the city’s reserves, "forward contracts" were concluded with a fixed price for the fruit and vegetable group, meat and grocery products with the regions. 2.6 billion tenge preferential loan agreements were signed with large retail chains for sale at fixed prices for rice, buckwheat, sunflower oil and a vegetable group (potatoes, onions, carrots, cabbage).
Due to the purchase of flour, the price of bread is kept in the range of 90-95 tenge per a first-grade bun. Commodity interventions of sugar from the stabilization fund are carried out at a price not exceeding 220 tenge.
In addition, a mobile group was created, which included district prosecutors, employees of the State Duma and the Ministry of Railways. They conduct raids, mainly based on the appeals of citizens about exceeding marginal prices for socially significant food products, and send the results to akims of the districts to bring them to administrative responsibility.
The city daily monitors prices and stocks of 19 types of socially significant food products in retail outlets, warehouses and at major suppliers. To ensure uninterrupted supplies on an ongoing basis in the mode of video conferencing, negotiations are being held with producers and suppliers from the regions on food supply.
At the same time, deliveries of perishable products (beef meat, chicken meat, eggs, dairy products, bread, vegetables) are carried out on a daily basis from manufacturers of Almaty, Pavlodar, Turkistan, Zhambyl and other regions. Delivery is made through the "green corridor", as part of ensuring unhindered access for trucks of agricultural producers in the regions.
Taking into account the volume of consumption of the city’s population by the main socially significant products, 7 billion tenge were provided from the local budget through the "revolving" scheme for the implementation of the intervention, of which 5 billion in March 2020. Also, since December 2019, the sale of vegetables (potatoes, onions, carrots, cabbage) through the Magnum distribution network has been ongoing at prices lower than the market average by 17-35%. Agreements have been signed with the largest trading network Magnum and Aksay HBK (bread) for uninterrupted supply of the city for three months for 17 types of goods at a stable price. The total volume of goods under the agreements is 26.5 thousand tons.
In addition, an additional agreement is currently being worked out to supply 5 thousand tons of vegetables and 1 thousand tons of beef meat to the city’s retail facilities at a fixed price.
To stabilize the price of buckwheat, 348.1 tons of this product from the stabilization fund for the total amount of 104.4 million tenge were sold. Selling prices are 10% lower than average market prices (339 tg / kg) and amount to 305 tg / kg on a shelf. Sales of products are carried out in over 100 stores of retail chains. Also, with other enterprises-manufacturers of the city, agreements were signed on fixing the selling price for the products until the end of this year.
A mobile group has also been created in the city, commissions have been set up in all 8 districts of Almaty to monitor compliance with the maximum allowable retail prices for socially significant food products.
As of April 21, 2020, the Commissions imposed 110 administrative penalties registered in the Unified Register of Administrative Proceedings, of which 78 fines were paid for 10.8 million tenge.
Since the beginning of April this year prices fell for 10 types of socially significant food products. In general, the price index for all types of NWFP amounted to 99.9%.
The city daily monitors available stocks to provide the population with food, primarily in 32 directions.
As of April 20 of this year In total, there are 83.8 thousand tons of food stocks in 32 directions, including:
- at stabilization funds – 5.8 thousand tons (6.9%);
- at enterprises – 43.9 thousand tons (52.4%);
- in warehouses – 26.1 thousand tons (31.1%);
- at trade facilities – 1.2 thousand tons (1.4%)
- according to the negotiable scheme (according to the loan agreement until the end of this year) – 6.8 thousand tons (8.1%).
On the territory of 6 large food markets of the city, mobile social points have been established for the sale of socially significant food products at marginal retail prices.
For stable provision of the population with sufficient products on deposits of the stabilization fund is 764.5 million tenge. For 2020, 2.2 billion tenge was allocated for the stabilization fund. Additionally allocated funds – 700 million tenge.
On March 30, 2020, the Stabilization Fund carried out a purchase intervention of 6,000 tons of goods worth 970 million tenge (sugar – 2,000 tons, grade I flour – 3,000 tons, pasta – 1,000 tons).
In addition to previously purchased goods April 15 this year a decision was made to purchase buckwheat – 200 tons, rice – 3,000 tons, sunflower oil – 300 thousand liters in the amount of 253 million tenge.
And also in order to provide the region with wheat flour, exporters who have received quotas are committing themselves to a guaranteed supply of wheat and flour to the domestic market. In this regard, a decision was made to purchase grade I flour – 1,000 tons.
Of the additionally allocated (700 million tenge) for the stabilization fund, 250 million tenge - for the formation of stabilization funds, 450 million tenge – for the working capital.
Everywhere in food markets, supermarkets, shops, prices for the products are controlled by the mobile group. Limited to the sale of large quantities of goods in one hand. Food retail facilities are working with the strengthening of sanitary epidemiological standards.
On April 14, 2020, the price index for socially significant food products in the region was 103.4%. The oblast akimat is working with entrepreneurs to clarify responsibility for violating the approved price limits for socially significant food products, together with the prosecutor's office of the region, issues of conducting inspections have been worked out, registration is being made in the audit accounting system.
The regional operational headquarters for monitoring prices and preventing shortages of socially significant food products is working to reduce prices for goods for which price caps are set. Including in the city of Kokshetau, prices for bread of the 1st grade were reduced from an average of 173 tenge / kg to 159 tenge / kg. Since April 13 this year Aksai Nan-Kokshetau LLP reduced the selling price from 77 to 75 tenge for a loaf weighing 550 grams. A direct supply and sale of chicken eggs from the producer of Kazger-Kus LLP was organized at a retail price of 267 tenge per dozen. The issues of reducing prices for other goods are being studied.
Today, the stabilization fund of the Esil SEC has 1,880 tons of socially significant food products, including: wheat flour of the 1st grade – 1,687.5 tons, buckwheat – 10.5 tons, rice – 78.9 tons, butter – 3 tons, sunflower oil – 100 tons. In total, 353.1 tons of goods were sold. The security of the region in socially significant food products is an average of 45 days depending on the product. The sale of goods is carried out without interruptions, there is no shortage of goods and rush demand in the region.
In order to increase the regional stabilization fund, additional procurement is carried out; 750 million tenge has been allocated from the local budget for these purposes. Every day, 300 tons of dairy products, 77 tons of beef, 123 tons of poultry meat, 2.2 million pieces of edible eggs, 1000 tons of flour and other goods are produced in the region, up to 100 tons of fruits and vegetables (potatoes, carrots, onions) are imported.
Two billion tenge were allocated from the budget of the Almaty region for the formation of a stabilization fund for the region’s food products. Funds in the amount of 1.3 billion tenge are planned to be used to issue loans to local producers of socially significant food products and large retail facilities in order to curb price increases directly in the districts and cities of the region.
With funds in the amount of 700 million tenge, it is planned to purchase 4,824 tons of 1 grade flour to control social bread prices. It is also planned to purchase rice, sunflower oil, pasta, buckwheat, potatoes and onions from domestic producers. Agreements were concluded for the supply of cheaper wheat flour of 1 grade by 52 bakeries of the region for baking shaped (social) bread.
Today, the sale of all types of socially significant food products is carried out in all large and small retail chains of Taldykorgan, districts and cities of the region.
There are 295 social retail outlets (25 stores and 270 departments), 141 fruit and vegetable stores (storage capacity 174.3 thousand tons), 100 greenhouse complexes (96 ha), 103 feedlots (25.6 thousand tons of meat per year) in the region. and 76 dairy farms (87 thousand tons of milk).
In each city and region of the Karaganda region, special mobile groups work with business departments to monitor prices to determine whether they meet the maximum. The list of goods not manufactured in the field includes buckwheat, polished rice (round grain weight) sugar, table salt, vegetable oil. Today, there is enough volume in warehouses to cover the needs of the population of the region for a month. Stocks are replenished daily by road and rail.
In the whole region, prices for socially significant food products are stable. The situation is constantly monitored.
Today in the region there are 64 thousand tons of basic food products, consisting of 32 items. Including, out of 14 socially significant food products produced in the region, for 7 items, security is 30 days or more (wheat flour, egg, potatoes, pasta, poultry meat, beef, bread), for 7 items: from 10 to 29 days (milk, cottage cheese, butter, kefir, cabbage, table carrots, onions).
The need for dairy products, as well as for products not produced in the region (peppers, garlic, cereals, vegetable oil, sugar, salt and fruits) is covered by production volumes and imported products.
The stabilization fund has 2,038.6 tons of socially significant food products. Currently, an intervention of potatoes and vegetables is carried out from the stabilization fund.
In connection with the emergency introduced in the country, a regional headquarters has been created, daily monitoring of available stocks is being carried out to provide the population of the region with food, primarily in 32 directions. As of April 16, 2020, a total of 32 directions has 57.6 thousand tons of product stocks, including: in stabilization funds - 2 thousand tons (3%), at enterprises – 16.4 thousand tons (25 %), in warehouses – 5.9 thousand tons (10%), at trade facilities and among the population – 40.1 thousand tons (62%).
For stable provision of the population with sufficient products up to 15 days, the deposits of the stabilization fund are 465.2 million tenge. In case of insufficiency, funds will be allocated additionally. In addition, there are 14 social stores in Turkistan; 17.8 tons of products are sold on a daily basis on an ongoing basis. As part of the implementation of the "Revolving Scheme", loans were granted to 5 business entities of the cities of Turkistan, Arys and Kentau for a total of 115 million tenge.
Since March 28, 2020, ubiquitously in food markets, supermarkets and grocery stores, prices for the significant products are controlled by mobile groups, which include representatives of law enforcement, regulatory and local executive bodies
North Kazakhstan region
Of the 19 socially significant food products in the region, 15 are produced (excluding sugar, salt, sunflower oil and rice). There is an agreement with all producers of basic food products (bread, flour, pasta, dairy products, eggs) to meet the needs of the region. There are 34.6 thousand tons of products in the region. This is a 39-day supply. For 6 socially significant food products (bread, horns, buckwheat, chicken egg, butter, potatoes), the lowest prices in the country.
To replenish the stabilization fund, an additional 300 million tenge was allocated. There are 347 tons of potatoes, 57 tons of carrots, 54 tons of onions, 39 tons of cabbage, 86 tons of rice, 14 tons of buckwheat, 1,994 tons of flour, 70 tons of pasta, 16.7 thousand liters of sunflower oil, 183 tons of sugar. This year 66 tons of salt were purchased.
It is planned to purchase additional volumes of rice, buckwheat, poultry meat, sunflower oil, 1 grade flour, pasta, potatoes, carrots, onions, cabbage (total about 1.5 thousand tons of products).
In order to control marginal prices for socially significant food products, a monitoring group has been created in the region to ensure control over approved marginal prices, which included representatives of state bodies, the prosecutor's office, the chamber of entrepreneurs and the public. Raids were carried out at 23 retail outlets (of which 5 – eliminated the identified violations, the remaining 18 – in operation).
East Kazakhstan region
Of the 19 items of socially significant food products in the East Kazakhstan region, 15 types of products are produced. The remaining 4 species: rice, eggs, sugar and salt are imported from other regions of the republic.
Akimats of cities and districts on a daily basis monitor the reserves of the products in shopping centers and grocery stores, and their availability in warehouses. Replenishment of goods is carried out according to supply contracts in the usual mode. Disruptions in the supply of socially significant food products are not observed.
As of April 16, 2020, the product stocks in the region at the warehouses of manufacturers, warehouses, stabilization funds and warehouses of retail chains are 51,030.4 tons.
According to official data of the Department of Statistics of East Kazakhstan oblast, as of April 14, 2020, the price index for the products in the region is 103.6%, which is 1.6% percentage point lower than the national average.
In order to contain prices for the products, the akimats of cities and districts conduct daily price monitoring. In the event of an unreasonable increase in prices for the products, state authorities take measures in accordance with the legislation in the field of protection of competition.
5,700 tons of fruits and vegetables of the 2019 harvest were purchased to the regional stabilization fund. As of April 15, 2020, 5,005 tons of fruit and vegetable products of the stabilization fund were sold, which is 87.8% of the total purchase volume, the volume of stocks is 695 tons.
Also, in the regional stabilization fund of JSC Ertis sugar was purchased in the amount of 680 tons at a price of 225 tenge.
The region is provided with its own food products in the main areas. The production volumes of flour, pasta and bakery products exceed the annual demand of the region’s population by almost 10 times, beef – 1.3 times, milk - 1.7 times, vegetable oil almost 1.4 times, eggs - 2.8 times, potatoes - 2.3 times. Groceries that are not produced in the field of sugar, rice, salt or are produced in small volumes by buckwheat, onions, cabbage are provided through import from other regions and imports.
Timely measures are taken to stabilize prices for basic food products. On a daily basis, prices for socially significant food products are monitored.
For the formation of the stabilization fund allocated 2031.8 million tenge. Of the 19 items of socially significant food products, 14 products are laid.
JSC Tobol conducted commodity interventions for 13 types of products that are sold throughout the region (sugar, egg, rice, beef, sunflower oil, butter, flour, onions, carrots, cabbage, potatoes, cones, buckwheat) . Reserves amount to 6.8 thousand tons.
95 agricultural fairs were held in the region, at which over 728 tons of products were sold. 868 memorandums and 441 agreements on direct deliveries of products were concluded. Branded shops and pavilions for the implementation of the products without intermediaries from producers were opened.
According to the Committee on Statistics of the Ministry of National Economy of the Republic of Kazakhstan since the beginning of this year, the consumer price index for socially significant food products in the Mangistau region amounted to 103.8%. To ensure food security in the stabilization fund of the Mangistau region, 650 million tenge of borrowed funds were allocated from the local budget through JSC SEC Caspian, of which:
- 270 million tenge to two flour mills in the region for the purchase of grain for the production of first grade flour;
- 380 million tenge according to the "negotiable scheme" for large wholesalers of the region for the purchase of the products. Of which, to date, 315 million tenge has already been purchased: potatoes, onions, cabbage, carrots, sugar, sunflower oil, pasta, milk, chicken meat, flour, rice, butter and is sold on the retail market.
To provide additional food supplies to the stabilization fund, 683 million tenge were allocated from the regional akimat reserve for urgent costs. Of which 566 million tenge have already been purchased: beef, pasta, sunflower oil, milk, flour, poultry, rice, sugar, salt and chicken eggs. All retail outlets have been notified of the excess of price limits.
Every day, akimats of cities and districts of the region, together with control and supervisory authorities and the public, carry out control to prevent retail entities from exceeding ceiling prices. To date, according to the results of monitoring on the revealed facts of exceeding the maximum prices for the products, akimats of cities and regions have drawn up 14 relevant acts in respect of trade entities and issued instructions for their elimination.
In the region, the price situation is daily monitored, akimats of cities and districts introduced the functions of business departments to conduct state control over compliance by domestic trade entities with the maximum allowable retail prices and to draw up administrative protocols.
To date, the monitoring group for trade has carried out explanatory work with the delivery of notifications to outlets (a total of 2,450 trade objects.) To prevent excess price limits. Also, in order to promptly respond to price increases, a Hotline and WhatsApp Channel were created under the management of entrepreneurship and trade.
Over the period from March 12 to April 16, the Hot Line (78-78-16) received more than 2,000 calls, the WhatsApp Channel (8-705-609-20-74) received more than 300 requests from citizens and SMEs regarding raising prices, introducing an emergency mode, limiting the working hours of business entities, the absence of masks and antiseptics in pharmacies of the region and other issues.
At the same time, work is underway to increase the number of social stores from 196 to 300 units by the end of April 2011, work is underway to conclude memorandums with agricultural producers to supply products to social stores at prices 10-15% lower than market prices. To date, 70 memorandums have been concluded. By the end of this month, it is planned to bring the amount to 100.
In the stabilization fund there are 2,795 tons of products worth 444.7 million tenge. At the expense of available funds, rice was purchased – 136 tons, buckwheat – 60 tons, pasta – 136 tons, salt – 68 tons, sunflower oil – 62.8 thousand liters, bread from 1 grade flour – 150 thousand rolls, sugar – 476 tons Contracts have been signed for the supply of buckwheat – 200 tons and flour of the 1st grade – 1,000 tons.
At the stage of concluding a contract for the supply of rice – 204 tons, pasta 204 tons, sugar – 1,020 tons, salt – 68 tons, chicken meat – 66 tons, bread from 1 grade flour – 150 thousand rolls. 1 billion tenge was allocated from the budget, including 500 million tenge for direct purchase of products to the stabilization fund, 500 million tenge in the form of short-term loans were sent to large supermarkets and producers to stabilize prices.
A working group has been created in the region from among state bodies, non-governmental organizations, social activists and deputies of maslikhats. Also, an operational Headquarters was established to monitor and control the prices of socially significant food products. Every day, the working group and regional akimats conduct monitoring of prices for socially significant food products, and also work is being done to clarify among directors of retail outlets about compliance with price limits for 9 products.
In case of speculative or unreasonable price increases for all food products, the population can contact the Department of Consumer Rights Protection in the Aktobe region at: 8 (7132) 710 - 253 or at www.dosmart.kz. For price increases for 9 items of socially significant food products, please call: 8 (7132) 74-21-80 (122).
According to the Commission’s decision, in order to stabilize prices according to the approved schedule, food products of the Stabilization Fund of the region are sold to the regions: potatoes - 65 tg / kg, onions - 65 tg / kg, cabbage - 70 tg / kg, sunflower oil - 300 tg / b and sugar sand - 230 tg / kg.
To date, the balance of goods in the fund is: potatoes - 475.6 tons, onions - 98.8 tons, cabbage - 43 tons, sugar - 221.7 tons, 1 grade flour - 12 tons, sunflower oil - 40.6 tons.
Akimat of the region keeps records of the availability of food products in retail chains and in warehouses of suppliers, the available reserves can be provided by the population of the region. Also, shipments of contracted volumes are tracked.
Today, in the framework of ensuring food security, the region’s food stocks are being monitored, a special regional headquarters has been created as part of state law enforcement, executive, supervisory bodies, public organizations.
To date, the stocks of the stabilization fund of food products contain 5.6 thousand tons of goods. The availability of stocks of goods in the region is 47.5 thousand tons, the security for actual consumption in days of storage of stocks of goods in the region is on average 44 days.
Twice a day, large supermarkets and regional markets monitor prices and the provision of basic food products. According to the analysis, daily produced meat, milk, bakery products provide domestic demand in full, the stocks of vegetables in storage are sufficient until the end of April, and for the production of social bread for two months the necessary supply of flour is formed.
The production of local flour, pasta, eggs, butter partially (50-80%) provides domestic demand, in case of increased demand, the production of these goods can be doubled. To do this, there is a sufficient number of livestock in the region, there are 3 newly created poultry farms, 4 pasta factories.
Among the products delivered from other regions, the region is regularly provided with rice, salt (Kyzylorda), flour, wheat (North Kazakhstan region, Akmola, Kostanay), sunflower oil, buckwheat (Pavlodar, East Kazakhstan region). In order to create a food reserve, work was urgently begun to purchase an additional 955 tons of goods worth 568.2 million tenge. For these purposes, an additional 220 million tenge was allocated from the local budget. To contain prices from the stabilization fund, goods are sold at lower market prices through large supermarkets and social stalls in the city.
West Kazakhstan region
The akimat of the West Kazakhstan region, since the state of emergency was introduced in the country, established an operational headquarters, formed 20 operational groups that monitor local prices daily, reduced trade mark-ups on socially significant food products in retail stores, and established contacts between wholesale suppliers, retailers and manufacturers , including from the Russian Federation, for uninterrupted supplies without intermediaries.
On a daily basis, there is a stock of food products at trading enterprises, producers, stocks at warehouses and the stabilization fund of the region, trade pavilions are provided on a "walking distance" basis for wholesalers of socially important food products – the population has access to goods at wholesale prices, centralized delivery is organized food in all areas of the region, in order to reduce transportation and other overhead costs.
An agreement was also reached with large networks in the region to hold the Rush Hour campaign for a state of emergency, where the chains sell basic socially significant food products at cost. Large wholesale suppliers of vegetable products daily centrally distributed products in the districts of the region at reduced wholesale prices.
By order of the akim of the region, a working group was established to monitor the excess of prices for socially significant food products. Every day, in online mode (a separate group in WhatsApp has been created), work is carried out with the leaders of retail chains to prevent unjustified price increases (cooperation to prevent artificial price increases and monitoring maximum prices), and to uniformly sell food products to customers (ban on the sale of large quantities of goods in one hands), on the opening of social corners (on the sale of food products at a reduced price for vulnerable segments of the population), they conduct offline meetings as necessary Cooking with large wholesale suppliers, producers and shops.
In order to ensure food security and replenish the stabilization fund with socially significant food products, from the beginning of the year, 881.8 million tenge were allocated from the local budget for the purchase of 4,299.4 tons of socially significant food products. In particular, 105.8 million tenge were allocated from the reserve of the local executive body of the Kyzylorda region for urgent expenses to prevent a shortage of food products for the purchase of 720 tons of products, and 776 million tenge were allocated from the regional budget for the purchase of 3,579.4 tons of products.
To date, 1,814.3 tons of products worth 379.85 million tenge have been purchased by the stabilization fund, which are sold through social stores at lower market prices: potatoes, carrots, flour, sugar, sunflower oil, cabbage, beef, chicken, dairy products, butter, eggs, pasta.
In total, on April 21, 2020, the region’s food supply, including the stabilization fund, retail facilities and their warehouses, is 11061.7 tons of socially significant goods. Where from them in the stabilization fund there is a stock of 2819.5 tons of products.
The products of the regional stabilization fund are sold through 28 social stores at low prices. However, in this situation, the allocation of budgetary funds to replenish the stabilization fund of the region with socially significant products and their implementation through social stores at lower market prices has brought positive results. The population of the region today mainly purchases food products through social stores. This, in turn, gave an impetus to the expansion of social stores, so by the end of the year it is planned to open an additional 34 social stores. To date, 349 food stores have been monitored in the region, and it has been established that the prices of socially significant food products correspond to marginal retail prices.
Food reserves in the region during this period are 5 970.1 tons. The stabilization fund totals 229.2 tons of goods (flour – 188.0 tons, potatoes – 22.7 tons, cabbage – 3.1 tons, carrots – 15.4 tons).
For 9 socially important types of food, there is an increase of 6 types (pasta - by 6%, buckwheat - by 6.3%, beef - by 4%, eggs - by 4.1%, vegetable oil - by 0.5% salt at 4.3%). Compared with the previous week, prices for pasta and salt increased by 6 and 4.3%, respectively, then prices decreased for buckwheat, by 1%, rice, by 6%, beef, by 4%, eggs, by 1%.
In order to form the necessary food fund of the region, additional funds were allocated to the stabilization fund from the local budget. With these funds, Atyrau SPK JSC concluded an agreement with the Ideal Market shopping center for the purchase of 12 types of foodstuffs in a stabilization fund and provides a loan of 400 million tenge. These products will be available to the population at marginal prices in 26 retail outlets of the city and 3 in the district, at only 29 retail outlets, and further work will be continued on the acquisition of additional goods.
In addition, from April 1 to 21, 2020, 14.1 tons of poultry meat, 20.1 tons of milk, 5.55 tons of vegetable oil, 6.7 tons of butter, 69.7 tons of potatoes, 55.8 tons of carrots, 6 tons of cabbage, 26 tons of sugar, 78.8 tons of products of various kinds, 48 ??tons of fruits and berries on 118 cars were delivered from Astrakhan. During the same period, through slaughterhouses in Atyrau, 459 cattle, 148 horses, 3 camels, 222 sheep were slaughtered and sent to markets and outlets.
For the coming 2020–2021, JSC Atyrau, on a fortified basis, entered into an agreement to purchase 138.2 tons of potatoes, 70.1 tons of onions, 65.7 tons of carrots and 35.4 tons of cabbage. At the beginning of the year, including 361, 8 tons of potatoes, 79.9 tons of onions, 49.3 tons of carrots, 114.6 tons of cabbage returned for renewal, by the end of the year the stabilization fund will have 500 tons of potatoes, 150 tons of onions, 115 tons of carrots, 150 tons of cabbage.
This year 9,222 hectares of land were sown (vegetables - 2 668 hectares, melons - 1 182 hectares, potatoes - 2 040 hectares, fodder crops - 3 332 hectares). Today 650 hectares are sown (vegetables - 345 hectares, potatoes - 70 hectares, forage crops - 235 hectares). Of these, drip irrigation is 3,000 ha (32.5%). 783 agricultural machinery was involved in spring field work. 15 irrigation and watering systems are connected to the water supply.
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