The issue of food security has recently been actively discussed in Kyrgyzstan. These discussions are raised amid world events, as well as the introduction of restrictions as one-handed sales in hypermarkets. On the wave of this, there is a risk of an artificial rush for basic necessities such as flour, sugar, and oil. How serious is the situation in reality?
The last time the country faced a similar situation was in 2020, at the onset of the pandemic. The new disease and uncertainty caused a heightened demand for many commodities, even the not obvious ones. As a result, speculators and resellers became active. This, in turn, caused an acute shortage of goods on store shelves, but thanks to the work of the antimonopoly service the situation quickly stabilized.
Now the situation is similar, but it is developing differently. Stores have indeed warned that they will be selling certain goods in limited quantities, but this is more about not causing a wave of speculation and resellers. Entrepreneurs and the government report that basic necessities are available, and there is enough stock to last for several months.
"Today, taking into account the processed sugar, as well as about 1.5 thousand tons of imported sugar, the availability of 11.5 thousand tons in the warehouse of Kaindy Kant JSC, the total volume is about 20 thousand tons, which is enough for the population for 2.5 months. In addition, there is sugar in stock for 2.5 months," Agriculture Minister Askarbek Dzhanybekov said.
He noted that there are reserves of vegetable oil, which is enough for 2.5 months, and taking into account the existing stocks in the warehouses - for another 3 months.
In addition, the country has more than 60 thousand tons of wheat in warehouses, not including processed flour.
"It became possible only due to the nullification of VAT on imports of food wheat. Several resolutions were passed on the meeting of the Cabinet of Ministers, including nullification of VAT rate on imports of sugar and vegetable oil. This also applies to a number of products imported into Kyrgyzstan. The list includes mineral fertilizers, seeds, seedlings, hatching eggs, fish food and many others," the minister said.
In addition, the antimonopoly services is also working. Last weekend, Chairman of the Antimonopoly Regulation Service under the Ministry of Economy of Kygryzstan Keneshbai Tailakov visited various retail chains to monitor prices.
"During the monitoring, explanatory conversations were held not only with representatives of retail chains, but also with consumers, comments were given on the rise in prices and the actions taken by the antimonopoly service. The monitoring revealed that there is indeed a slight increase in the prices of some food products, which is seasonal in nature, mainly for vegetables (potatoes, carrots) no more than 2-3%. In connection with a sharp rise in the exchange rate and import dependence of the republic there is a growth in prices of vegetable oil, pasta and flour. In addition, due to the increase in wholesale selling prices of producers, the retail price of sugar in the secondary market has increased,” the press service of the Antimonopoly Regulation Service said.
An Agreement was signed on cooperation on the market of selling granulated sugar to the population between the Antimonopoly Regulation Service, business entities producers, importers and sellers of granulated sugar and retail chains.
Under the terms of the Agreement, trading networks will sell granulated sugar at a price of KGS 67/kg for promotional purposes with the limit of 1 kg per day on discount / loyalty cards, which will provide the population with sugar at an affordable price. At the same time, the sale of sugar over 1 kg will be made by retail chains at a commercial price.
"Also, at present, thanks to the previously signed Cooperation Agreement between the Ministry of Economy, the AntiMonopoly Regulation Service, the Ministry of Agriculture and enterprises of the flour-milling industry of the Kyrgyz Republic, the prices for flour are stable. Flour mills have undertaken a number of commitments to provide flour to the country.
The chairman of the Antimonopoly Regulation Service noted the need to contain the prices of socially important food products and ensure their affordability to the population of the republic. The antimonopoly authority will not unreasonably interfere in the activities of market entities, but in order to avoid price manipulation and artificial overpricing of socially significant goods, goods and services of natural monopolies and dominant entities, it will work to suppress them within its authority," the Antimonopoly Regulation Service said.
Keneshbai Tailakov also added that antimonopoly officials will conduct daily monitoring of prices of socially important goods and identify the validity of price increases in order to avoid creating a rush demand and shortage of goods.
Similar activities are conducted in all regions of the republic by territorial divisions of the antimonopoly authority.
Consequently, there is no need to worry about a significant increase in food prices. Yes, there is, but it is more related to logistics issues and foreign currency fluctuations. In general, the situation is predictable, it was earlier forecasted by experts as one of the options.
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