WEEKLY REVIEW: We should control food prices through agricultural enterprises support - K.Massimov

ASTANA. November 5. KAZINFORM /Muratbek Makulbekov/ The negotiations on Kazakhstan's accession to the WTO were successfully completed with the European Union - signing of a protocol is expected till the year-end. The bilateral talks with the USA are planned to be completed by the end of the year. The negotiations results held in

Brussels at the end of October reflect the Kazakh interests in attraction of investments and technologies in Kazakhstan's economy.

On Monday, November 1 Prime Minister Karim Massimov has heard the reports of Minister of Transport and Communications Abelgazy Kussainov and Governor of the South Kazakhstan oblast Askar Myrzakhmetov on accelerated construction of Western Europe-Western China international transport corridor in South Kazakhstan oblast and purchase of land parcels for construction of the line in the region. A. Kussainov and A. Myrzakhmetov informed of development of a schedule of purchase of land parcels needed for the construction. Minister Kussainov added that construction of Western Europe-Western China corridor in other regions - Kyzylorda, Aktobe and Zhambyl oblasts - is being carried out according to a schedule. 400 km of the international transport corridor will be put into service this year.

At the Government's session on Tuesday, November 2, Chairman of the Competition Protection Agency Mazhit Yessenbayev informed of numerous facts of unwarranted price increases in food. According to these facts, there are carried out investigations. Over 10 months of 2010, inflation made up about 7 percent, and the food share - 5.5 percent. Food prices increase is connected with the drought consequences, seasonality of food supplies and unfair activity of market entities and non-operational intervention in the market by the central and local executive bodies. Owing to the measures taken bread and flour prices stabilized. As Executive Secretary of the Ministry of Agriculture Yevgeny Aman announced, as of November 1 the grain yield made up 13.9 mln tones of grain. Taking into account carryover storage, this will be enough for full ensuring of internal need of the country and maintenance of export potential amounting to 7-8 mln tones. Prodcorporation created a necessary reserve of food wheat for regulation of the grain market, stabilization of prices for flour, bakery and paste goods. The gross yield of oil crop made up 732 thousand tones. It is only necessary to render financial assistance to processing plants in the form of credits for raw materials procurement. KZT 5 bln is allocated for these purposes to KazAgro Holding.

The Government plans to control prices for major food products, with this view there will be adopted a number of measures including on creation of reserves of some sorts of food products.

Vice Minister of Industry and New Technologies Berik Kamaliyev introduced the draft program on the Kazakh content development which provides increase of the share of the Kazakh content in the total information technology market of the country by 32 percent by the end of 2014. This index - 32 percent - will be achieved by increasing production of such goods as computers, modems, printers, multiplexes, server equipments, component parts of telephone and radio communication.

The Premier gave a number of instructions to the ministries and departments. In particular, the Ministry of Communication and Information was charged to consider the issue of creation of so-called 'cloud' on the territory of Pavlodar oblast.

K.Massimov reminded that it is necessary to solve the issue on wagons' production.

The same day K.Massimov met with a delegation of governmental and business circles of Singapore headed by Special Advisor for Economic Development in the Prime Minister's office Philip Yeo in the Ukimet Uiy. The issues of further strengthening of bilateral trade-economic cooperation as well as exchange of experience in the field of modernization and development of economy were discussed.

In the afternoon the Kazakh Premier held a regular session of the Single Coordination Council on Entrepreneurship under the Government. The session was held in the mode of online conference with participation of governors, mayors of the cities of Astana and Almaty. The Council members considered the issues of implementation of the Business Road Map-2020 program, proposals on increasing productivity of the domestic enterprises, further measures on reduction of administrative barriers and etc.

Next day, November 3 the Kazakh Prime Minister met with First Deputy Prime Minister of Russia Igor Shuvalov, Head of the Russian Federal Customs Service Andrey Belyaninov and Chairman of the State Customs Committee of Belarus Alexander Shpilevsky. They discussed the issues of increasing effectiveness of interaction of customs bodies of the Customs Union member states. K.Massimov chaired the 28^th session of the Republican Budgetary Commission. The issues of amendments to the 2010 national budget in accordance with the Law of the Kazakh President "On measures on increasing effectiveness of the law enforcement activity and judicial system in the Republic of Kazakhstan" as well as in connection with parameters optimization of design estimate documentation of budgetary investment projects. The same day there was held a telephone conversation of the Prime Minister with Chairman of the Russian Government Vladimir Putin. The issues of bilateral interaction within the framework of the Customs Union and the Single Economic Space formation were discussed.

On Thursday, November 4 Karim Massimov met with Minister of Industry and Energy of Azerbaijan Natig Aliyev who arrived in Astana for participation in the 7^th session of the Kazakh-Azerbaijani Intergovernmental Commission for economic cooperation.

The issues of further expansion of bilateral trade-economic interaction were discussed at the meeting.