Food products

The Minister of Trade and Integration of the Republic of Kazakhstan Bakhyt Sultanov called for increasing the low-priced loans to retail chains to 50 billion tenge.

According to the Minister, the current mechanism for lending to entrepreneurs is effective, but for a significant impact on the market, an expansion of financing is required.

"It is necessary to increase the low-priced loans to chains to 50 billion tenge, accompanying contracts with domestic producers in the "manual mode". It is also important to keep a clear forecast for producers and develop specific proposals for local executive bodies in the context of regions and goods to establish counter-obligations to state support measures," Sultanov said at a government meeting.

According to the Department Chief, the volume of stable funds is insufficient to hold down the prices.

"The volume of reserves of stable funds is insufficient, that is, 25.4 thousand tons were formed in the amount of 3.7 billion tenge. Their interventions account for only 0.2% to 1.4% of total consumption. This practically does not have a proper impact on the prices," Bakhyt Sultanov said.

According to him, the reserves of stable funds themselves are formed inefficiently.

"For example, in Aktobe region in 2020, the prices increased most for sugar (56.9%), buckwheat (40.0%), sunflower oil (31.1%) and eggs (17.5%). At the same time, the funds purchased vegetables, for which there was a slight increase in prices during the year," he said, adding that it is necessary to review the stabilization funds, concentrate funds and efforts only on risk-related import-dependent goods.

The Minister also stressed that some market instruments have shown their effectiveness. This is a forward purchase and a "reverse scheme".