MA comments on information about the sugar deficit: there is no reason for concern

September 18 at a press conference following the meeting of the Government, First Vice Minister of Agriculture Arman Yevniev commented on rumors about the forthcoming sugar deficit in Kazakhstan.

Егемен Қазақстан
18.09.2018 4010

Recall, last week, representatives of companies that use sugar in their production, made a statement about the alleged imminent shortage of the product in the near future.

Yevniev noted that an internal market research was conducted, the results of which showed that there was no cause for concern.

"The population should be calm, because, firstly, we have calculations on the balance sheet, on the availability of sugar, on exports, and on imports. Our domestic sugar production is growing: if in 2011 our own production of sugar from sugar beet was 200,000 tons, then in 2018 we plan to process more than 460,000 tons," Yevniev said.

The first vice minister of agriculture also explained what was the reason for the rumors.

"In the summer, a government decree was adopted. Since August the Government, within the framework of agreements with the EAEU partners, has cancelled the duty-free import of cane sugar to Kazakhstan from third countries. This means that now these parties will have a fee of $340," the first vice-minister informed. This measure, he said, was adopted in order to develop domestic production. The potential — the necessary land, water, commodity producers for this in the country are available.

Yevniev also noted that at present a sectoral program for the development of the sugar industry is being developed.

"At the level of the Government, a set of operational measures has been discussed and is being implemented. There is an agreement with the Eurasian Sugar Association. Until the end of this week, they arrive in Kazakhstan in order to confirm and consolidate their ability to supply sugar with the relevant contracts, that is, they will confirm the volumes and fix the prices for the supply," the first vice minister noted. Thus, the statement that Russian producers can not supply sugar to the Kazakh market is untrue.

According to Yevniev, private companies delivered about 10,000 tons of sugar before the adoption of the Government’s decree.

"But this sugar did not pass the customs clearance, and the question arose that it should be imposed customs duty on a new order. An appropriate decision of the Government is currently being worked out to allow these enterprises to customs clearance this sugar according to the previously valid conditions, that is, at a zero rate," the first vice minister explained.

According to the Ministry of Agriculture, today in the stabilization funds of Kazakhstan there are about 15,000 tons of sugar, as well as free funds to purchase the required amount.

"This is not the whole list of measures that we can take, so the population does not need to worry. On the other hand, there is an overproduction of sugar in world markets. This is due to the fact that more and more people understand the healthy diet, reduce sugar consumption, switch to eating fruits, honey, etc.," the first vice minister summed up.

To date, domestic producers of sugar provide 10% of the total market. Sugar in Kazakhstan is produced in Almaty and Zhambyl regions. At the same time, all conditions for sugar production are available in North Kazakhstan, Kostanay, Akmola, Karaganda, Pavlodar regions. In the future, investment projects will be implemented in this direction.

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