One of the mechanisms created by the state to curb the growth of prices for socially important food products is the formation of a regional stabilization fund, through the purchase and sale of food products, as well as the provision of preferential loans.
In accordance with the Order of the Minister of Agriculture of the Republic of Kazakhstan dated June 5, 2023 No. 217, JSC RIR SEC Zhetisu is a specialized organization operating in this field.
To ensure the implementation of price stabilization mechanisms for socially significant food products (hereinafter referred to as NWFT), a Commission is formed that determines the list of food products purchased by the stabilization fund, as well as approves the list of business entities that have applied for a preferential loan. The Commission consists of members of public organizations, representatives of private business entities and employees of government departments.
The Stabilization Fund is formed for food products from the list of socially significant food products, which consists of 19 items approved by Order No. 166-NK of the Deputy Prime Minister – Minister of Trade and Integration of the Republic of Kazakhstan dated May 11, 2023.
As of the current date, the total amount of financing for price stabilization mechanisms in the Zhetisu region is 9.2 billion tenge, of which:
– for the formation of a stable fund – 1.2 billion tenge (including: from the reserve of the Government of the Republic of Kazakhstan – 1.0 billion tenge; from MB – 180.0 million tenge);
– for concessional lending to business entities – 8.0 billion tenge (from MB, concessional loans at 0.01% were issued to 21 business entities, including 18 commodity producers and 3 trade entities).
Contracts for the supply of 30.7 thousand tons of goods worth 9.4 billion tenge were concluded under two mechanisms. A commodity intervention in the amount of 8.6 thousand tons of NWT was carried out.
As of the current date, contracts for 19 items of NWT in the amount of 22.1 thousand tons in the amount of 8.6 billion tenge are in force under price stabilization mechanisms, including 668 tons of rice, 452 tons of grade 1 flour, 62 tons of buckwheat, 264 thousand loaves of bread, 19 tons of cones, 15 123 tons of sugar, 568 thousand liters of sunflower oil, 233 tons of dairy products, 560 tons of cabbage, 417 tons of onions, 547 tons of carrots, 3,130 tons of potatoes, 150 tons of beef, 3 tons of chicken meat, 4 tons of salt and 4.4 million eggs.
The contracted goods are sold in 7 social retail outlets of SEC Zhetisu and retail chains (Small, Magnum and Toymart).
About contracting autumn vegetables
In order to prevent an increase in prices for the vegetable group of goods in the period from October 2024 to May 2025, SEC Zhetisu contracted 4,597 tons of vegetables within the recommended volumes of the Ministry of Agriculture of the Republic of Kazakhstan:
– potatoes 3,100 tons at a price of no more than 120 tg/kg;
– carrots 537 tons at a price of no more than 140 tg/kg;
– onions 400 tons at a price of no more than 86 tg / kg;
– cabbage 560 tons at a price of no more than 150 tg / kg.
Part of the contracted volume will be put into long-term storage in the SEC vegetable storehouse.