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President insists on establishing a single grain holding company

24 января 2013, 01:30
Grain storage. RIA Novosti ©
Grain storage. RIA Novosti ©
Kazakhstan can’t do without a single grain holding company, a Tengrinews.kz journalist reports, citing President Nazarbayev as saying at a sitting in his Akorda Residence held to tally 2012 results.

“In my State of the Nation Address last January I instructed to launch a single grain holding company to solve grain producing companies’ problems, ensure effective sales of grain in the global markets (…) No holding company has been founded so far (…)”, President said when addressing the country’s Agriculture Minister Assylzhan Mamytbekov.

The Minister answered there is no necessity to launch such a holding company. “All over the world grain producers work independently (…) We have seen inefficiency of the planned economy back in the USSR”.

“I am fully convinced such a holding company is a must (…) In fat years grain producers demand independence. But, for instance, last year [when the harvest was severely hurt by droughts] they begged for help as they were heavily indebted. In such tough conditions they can go bankrupt and lose whatever property they have. Are they fully aware of that?”, President commented on the Minister’s remarks.

President emphasized there should be a single policy regulating grain sales. “In favorable times grain producers want to be self-reliable; and in time of trouble they ask for help, at the same time demanding the government not to intervene (…) If you don’t have enough will, you will be misled and won’t be able to serve as PM (…) I am fully aware of all the issues and know that grain producers have a lot of loans from banks”, President said when addressing the country’s PM Serik Akhmetov.

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