“An outdated measure” Kazakhstan to phase out price regulation on staple foods

Anelya Kupbayeva
Anelya Kupbayeva Корреспондент

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“An outdated measure” Kazakhstan to phase out price regulation on staple foods ©️ Tengrinews.kz / Turar Kazangapov

Tengrinews.kz – Kazakhstan plans to gradually abandon the mechanism of regulating prices for socially important food products (SIFPs) and shift to targeted digital support for consumers, Trade and Integration Minister Arman Shakkaliyev announced at a government briefing.

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Tengrinews.kz – Kazakhstan plans to gradually abandon the mechanism of regulating prices for socially important food products (SIFPs) and shift to targeted digital support for consumers, Trade and Integration Minister Arman Shakkaliyev announced at a government briefing.

Calling the current system "a relic", Shakkaliyev explained that the ministry will move toward market-based tools. Under a pilot project in Akkol, Kokshetau, and Pavlodar, recipients of targeted social assistance are provided with food vouchers, allowing them to purchase products at a discount throughout the year.

"This is a more effective model: both producers and consumers will face less regulatory pressure," he noted.

The pilot will run until the end of 2025, after which the program will be expanded nationwide in 2026.

"It’s an evolutionary process; there won’t be an immediate cancellation," Shakkaliyev said.

For the transition period, the existing cap on trade markups for SIFPs at 15 percent will remain in place. The minister added that legislation will also introduce trade remuneration to prevent inflated costs along supply chains.

The government’s list of regulated goods currently includes 19 items, such as flour, bread, pasta, buckwheat, rice, potatoes, onions, cabbage, sugar, sunflower oil, beef, chicken, milk, kefir, butter, eggs, salt, and cottage cheese.

Earlier, Shakkaliyev announced additional measures to stabilize food prices, while the Ministry of Agriculture reported that the average retail price for beef ranges from 3,500 to 4,300 tenge per kilogram. Prime Minister Olzhas Bektenov instructed officials to strictly curb any unjustified price increases for basic foodstuffs and use all available control mechanisms.

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