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Government considered the mechanisms of food price stabilization

by December 12, 2016 Key Issues

“In this regard, we propose three mechanisms for stabilization of prices for food products,” First Deputy Minister of Agriculture Kairat Aituganov said.

Firstly, this is a simplification of the existing order of business stabilization funds. Today, the process of decision-making for purchase or sale of Stabilization Fund resources heavily regulated. It is proposed to remain the approval procedure with the Commission the list of goods and maximum allowance.

In the second mechanism proposed to allow the SEC to create a company on the basis of public-private partnership with a share of state participation in the authorized capital of not more than 49%. For private companies, this project will benefit from the resources provided by the SEC – trade credit or cash, stores and other social SEC objects. The advantage for the SEC is to minimize the need for additional infrastructure costs.

The third mechanism develops requirements for commercial facilities. Contract is concluded with the trading objects; mayor’s offices rpovide – lending facility from the commercial facility – a commitment to the implementation of a specific range of products at a fixed price set by the agreement.

For the implementation of these mechanisms, changes will be made in the law of the agribusiness in the exclusion concept of “stabilization fund” and the inclusion of the concept of “foodstuffs mechanisms to stabilize prices.”

Source: The Prime Minister of Kazakhstan