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Kazakhstan has prepared a package of measures to regulate the market of agriculture produce with a view of stabilizing food prices, Agriculture Minister Asylzhan Mamytbekov announced. “This package of measures comprise (…) three blocks. Their implementation is expected to bring about positive effect by 2011-2012 winter”, he said when speaking at a government’s sitting in Astana May 24. As a measure to mitigate seasonal price fluctuations, stabilization funds are to be created in country’s regions. “The operator – upon coordination with the local authorities – will be purchasing agricultural products mainly in the Southern part of the country each autumn. The products will be stored in special storages. To prevent peak prices, the operator will be supplying the products to its sales outlets and sales chains with which agreements have been signed to sell the products at a fixed premium”, the Minister elaborated. Besides, vegetables growing farms will be exempted from VAT. Alongside that, the Ministry suggests special allowances for socially vulnerable groups of population to mitigate the effect of price hikes on these groups. The allowances will be changed depending on price forecast. “This package seeks to stabilize prices, rather than set fixed prices. We are aware that we are part of the global market. We cannot and should not deny changes of global prices: such an attempt would undermine local production”, Mamytbekov said.
Kazakhstan has prepared a package of measures to regulate the market of agriculture produce with a view of stabilizing food prices, Agriculture Minister Asylzhan Mamytbekov announced.
“This package of measures comprise (…) three blocks. Their implementation is expected to bring about positive effect by 2011-2012 winter”, he said when speaking at a government’s sitting in Astana May 24.
As a measure to mitigate seasonal price fluctuations, stabilization funds are to be created in country’s regions. “The operator – upon coordination with the local authorities – will be purchasing agricultural products mainly in the Southern part of the country each autumn. The products will be stored in special storages. To prevent peak prices, the operator will be supplying the products to its sales outlets and sales chains with which agreements have been signed to sell the products at a fixed premium”, the Minister elaborated.
Besides, vegetables growing farms will be exempted from VAT. Alongside that, the Ministry suggests special allowances for socially vulnerable groups of population to mitigate the effect of price hikes on these groups. The allowances will be changed depending on price forecast.
“This package seeks to stabilize prices, rather than set fixed prices. We are aware that we are part of the global market. We cannot and should not deny changes of global prices: such an attempt would undermine local production”, Mamytbekov said.
