Asylzhan Mamytbekov "there will be no bread coupons!"

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The Minister of Agriculture gave an explanation why the price of social bread can change in Kazakhstan

It is expected that the rules of pricing of social bread can change in Kazakhstan. For bread which remains the cheapest and weighs 600 grams. Now the price for this kind of bread is still regulated by the state, but it is possible that it can dramatically increase in price due to the transition to market-based pricing mechanisms.

Minister of Agriculture Asylzhan Mamytbekov talked about the reasons during the today’s governmental hour in Mazhilis.

"Every year, the Government of Kazakhstan spends 12-15 billion tenge on state measures in order to reduce the price of a loaf of standard bread, weighing 600 grams. We make bread cheap for rich and poor. This is quite expensive", - declared the Minister.

Mamytbekov also cited estimates of the Ministry of Health and Social Development, which showed that, "if to reduce the price of bread only for the relevant target groups, it will cost only 1.5 billion tenge for the state".

"That is, we waste state budget. Why do rich people have to buy bread at a low price? "- wondered the Minister.

Among other reasons for the possible release of prices for social bread, the head of the Ministry of Agriculture has called corruption-factors, as well as "very complex mechanism of cheaper prices".

"The price of bread is being reduced at the level of local budgets, but does the reduced price flour and wheat get to the right people and place? Often we get signals on the reduced price flour, which appeared on the market. Who gets super margin, covered by the state budget, it is unclear. Why should we allow this, it is not clear. If we need to help someone - we have to apply targeted approach", - said A. Mamytbekov.

Commenting on the options discussed today the transition to market prices for social bread, Minister of Agriculture said that no food coupons will be applied, in spite of the fact that such information was widely spread in Kaznet. "The Ministry of Agriculture does not offer bread coupons, and doesn’t need to invent anything, the targeted group of the population will get the necessary amount of allowance", - said the head of the Ministry of Agriculture.

The Minister has repeatedly urged public not to aggravate the forthcoming cancelation of the state regulation of prices for social bread, stressing that it is "purely an economic issue".

In addition, Asylzhan Mamytbekov explained today why in Kazakhstan, in the nation, which is renowned for its grain, the customers are not satisfied with the quality of the bread in the shops.

"Cheaper bread and regulations, continued government intervention in the market has led to if you notice that in all the cities we have the old Soviet bakeries. No new investments and technologies, and, unfortunately, our best wheat in the world is not converted into a very tasty bread", - said the Minister.

The situation is aggravated by the lack of investment in older bakeries, which are located almost in every city. "There are no investments, because a normal investor knows that the state can interfere at any moment and enforce it pricing policy", - said eloquently the Minister.

The head of the Ministry of Agriculture quoted some statistics: "We haven’t revised bread consumption rates since the Soviet era, according to the old rate it is 120 kg of wheat per person".

"We counted on the example of 2010 and 2012, when it was the period of the most severe drought and reduction in price occurred only at the expense of Food Corporation. Our country consumes just one million tonne, instead of 2.4 million, as it should be according to the norm", - said A. Mamytbekov.

Zhanar Serdalina