Kazakhstan citizens should see real results from measures taken — Kazakh PM on inflation control methods

The updated set of measures to control and reduce inflation for 2023-2024 was considered at the Government session chaired by Prime Minister Alikhan Smailov, El.kz cites primeminister.kz.

The Minister of National Economy Alibek Kuantyrov reported that the updated package of measures consists of 93 measures of operational and medium-term character, providing for an increase of domestic production (food, building materials, goods of light, chemical and pharmaceutical industries, etc.), steps in storage, logistics and retail trade, control of pricing, anti-monopoly and foreign trade regulation. In particular, measures have been developed to stabilize prices for socially important foodstuffs, fuels and lubricants, coal and medicines.

So, it is envisaged to reformat the work of stabilization funds by transition to conclusion of forward contracts between agricultural producers and agricultural enterprises as well as implementation of the project on increasing income of rural population and development of agricultural cooperation "Auyl Amanaty" with issuing 17 thousand beneficial micro-credits and creation of 18 thousand jobs in current year. Besides it it is planned to implement 24 projects on creation of new and expansion of acting milk and cattle farms by experience of North Kazakhstan region, 19 projects on poultry meat production and 17 projects on meat products processing.

At the same time measures will be taken to increase the storage capacity of potatoes and other vegetables, to load the statutory funds for effective commodity interventions during the off-season and to identify unproductive intermediaries. Work will continue on the conclusion of agreements between large producers and retail networks to reduce and maintain food products prices, holding weekly agricultural fairs, creating a unified information system "National commodity distribution system" and other areas.

Agriculture Minister Yerbol Karashukeyev said that this year the area of early maturing potatoes increased to 10.6 thousand hectares, cabbage to 8.3 thousand hectares, carrots to 2.2 thousand hectares, onions to 3.3 thousand hectares. The issue of import substitution for basic foodstuffs is solved comprehensively through the implementation of 900 investment projects in the field of agriculture until 2026 totaling 2.8 trillion tg. In particular, in 2023 it is planned to implement 291 projects worth 536 billion tenge.

As Deputy Prime Minister – Minister of Trade and Integration Serik Zhumangarin noted, as a result of purposeful actions it was possible to suspend the growth rate of prices for basic foodstuffs. For the last 6 weeks it has not exceeded 0.1%, and since the beginning of the year it has been 3.4%, whereas for the same periods of the last 5 years it averaged 6.4%.

According to him, a stock of vegetables in the amount of 139.5 thousand tons has been formed for the current off-season. Today 58.4 thousand tons have already been sold, including 27.5 thousand tons of potatoes, 11 thousand tons of carrots, 10 tons of onions and 9.9 tons of cabbage. The work on the contracting of the autumn harvest of the current year to smooth the seasonal price fluctuations in the interseasonal period of 2024 is going on at the present time. For this purpose, about 100 thousand tons of vegetable products have already been contracted.

Having heard the speakers, Prime Minister stressed that the main goal is to ensure the reduction of inflation by half by the end of the year. In this regard, from all heads of government agencies is required a full commitment in qualitative implementation of activities of the relevant comprehensive plan.

"An important task of the Government and local executive bodies is to stabilize prices for socially important food products. At the same time, indicators of food inflation show that in a number of regions this work is carried out ineffectively," Alikhan Smailov said.

He pointed out that over the past week (from April 11 to 18) there was a rise in prices for socially important products by 0.1%. In Aktobe, Ust-Kamenogorsk, Semey and Kyzylorda the figure was about 0.2%.

"Akimats of the regions need to tighten monitoring of prices for socially important products. We need to take proactive measures to prevent exceeding 15% of trade mark-ups. Akimats have all opportunities for this, financial resources, controlling functions," the Prime Minister said. 

He added that it is necessary to increase the share of domestic goods in the domestic market, to ensure the development of mechanisms for the storage and transportation of goods.

"The population should feel and see a real benefit from the measures taken," Alikhan Smailov stressed. 

At the same time it is important to take special control of the implementation of measures in the regions on forward purchases, stabilization funds, application of the turnover scheme, antimonopoly and trade regulation measures.

"We need to encourage businesses on the ground to increase domestic production of food products, storage capacity, logistics, implementation of projects in the manufacturing industry," he said.

In conclusion, the Prime Minister pointed out that it was necessary to ensure clear coordination of the implementation of the package of measures, as well as to review its progress and to take appropriate action on a monthly basis together with responsible government agencies.

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