Disadvantages of old mechanisms for stabilizing food prices named in Nur-Sultan

NUR-SULTAN. KAZINFORM A strategy has been developed in the capital to stabilize prices for socially important food products. This was announced by the head of the Department for Investments and Entrepreneurship Development of the city of Nur-Sultan Yerzhan Baltayev at a meeting of the city maslikhat, Kazinform correspondent reports.

“Until 2019, the formation of the stabilization fund was carried out according to a single mechanism – this is the purchase and storage of food in the warehouses of the stabilization fund. The SPK itself purchased food and sold it on its own. This led to a loss, high operating costs for storage, transportation, unloading of food products, and, of course, we could not avoid the loss of perishable products, especially for vegetables,” Yerzhan Baltayev said.

At the same time, as the head of the department noted, the practice of issuing a loan to stabilize prices also revealed the weaknesses and vulnerabilities of this mechanism.

“Under the conditions of the sanctions policy of Western countries against Russia, the supply of sugar to Kazakhstan was immediately stopped, including to business entities that received a loan. Unfortunately, they do not receive the required volume. We hope that by the end of August the ban on the export of sugar (from Russia) will end and sugar supplies to Kazakhstan will resume, given that more than 50% of sugar supplies come from the Russian Federation. In this regard, taking into account the two mechanisms – this is the stabilization fund and the revolving mechanism, we assume that the best is direct purchase from suppliers through the revolving mechanism, as well as through networks such as Magnum and Akmol. In addition, we believe that there is also a need to purchase products that are stored for a long time, such as sunflower oil, to the stabilization funds of our SEC,” Yerzhan Baltayev added.

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