Shortage of sugar products not observed in Kazakhstan - Ministry of National Economy of Kazakhstan

ASTANA. KAZINFORM - Minister of National Economy of Kazakhstan Kuandyk Bishimbayev met with representatives of "Central Asian Sugar Corporation" LLP ("CASC" LLP), importer "Belarusian Agrarian Company" LLP ("BAC" LLP) and "As-An" company (a large wholesaler).
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According to the Ministry, the purpose of the meeting was to study the situation at the sugar market. By May 25, 2016 an average retail price of sugar in the regions increased by 25.5% in comparison with December 2015.

According to "CASC" LLP the price increase is due to a number of objective reasons such as expensive raw materials, increase of utility cost and tariffs on cargo transportation. The company drew attention to the fact that price increase is observed every year in summer, because demand increase among the population.

The manufacturer and wholesaler reported that this year demand for sugar has increased in Kazakhstan. In turn, "CASC" LLP almost doubled sugar production in 2016, shortage of sugar products is not observed in the country, Kazinform refers to primeminister.kz.

"CASC" LLP has power and capacity to produce a required quantity of sugar for domestic market. In general capacity load depends on import of raw materials due to insufficient domestic raw material - sugar beet.

According to preliminary data of the antitrust authority, today the sugar market has unjustified restriction of sugar and speculative rise of sugar prices in the regions at the level of medium and small wholesale market. Therefore the antitrust authority conducted a detailed analysis to determine sugar violations of antitrust laws.

Department of the Committee for Regulation of Natural Monopolies and Protection of Competition in Karaganda region has already begun the first investigation at the sugar market.

The Ministry of National Economy plans to consider speeding up procedures for issuing licenses and annual quota on imported raw materials for sugar producers.

In addition, by the decision of the Customs Union Commission that Kazakhstan guarantees not to export white sugar produced from raw sugar in Russia and Belarus.

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