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Wednesday, September 18th, 2019

Government notes ineffectiveness of stabilization funds in regulating food price

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A regular meeting of the Government considered the measures to prevent the growth of prices for socially important food products.

We can say in general that the regions have undertaken some work, and strengthened it in some species. In particular, the number of fairs held has increased. Products 9.1 billion tenge worth have been sold at 1,493 fairs held in September-November. Whereas, the figure for the entire 2015 was 3,500. Nevertheless, stabilization funds created in the regions are ineffective, the First Vice Minister of Agriculture Kairat Aituganov said.

According to the speaker, the situation analysis has identified a number of problems. So, part of resources allocated to the stabilization funds are often on deposit. In some regions, the amount of deposits exceeds the half of funds allocated. In addition, attention is drawn to the huge accounts receivable, which in some cases reaches 90%.

According to K.Aituganov, these problems are due primarily to inefficient management.

For example, Almaty akimat allocated in last-year December 14 billion tenge for stabilization funds, 13.4 billion tenge of which are still on deposit, while the food prices in Almaty have increased by 8.4% since the year-beginning.

We need to draw up clear action plans for stabilization funds, which must determine what, when and where to purchase, where to store and when to sell. However, the regions do not pay sufficient attention to the mechanism and do not elaborate such plans. As a result, stabilization funds operate on a case-by-case basis, the Frist Vice Minister emphasized.

Source: Government of the Republic of Kazakhstan

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