The establishment of a network of the wholesale and retail centers (WRC) throughout Kazakhstan could drop the price for the products up to 25%. Prime-Minister Askar Mamin said about the initiative in the government meeting, Toppress.kz corresponds.
Well known that in the market particularly during off-season a price increase happens for a range of products including those of a social provision importance. Due to statistics, for the period from 17 March till 7 April the rise of the prices of social important products was 4,2%. Unscrupulous market members take advantage of the emergency situation. Thus, there is government involvement needed as well as price limitations, – Prime-Minister concluded.
He noted that the government “made the systematic decision on establishment of national product distribution network – wholesale and retail centers”. This network “will become a key factor of fruit and vegetable production growth, including increasing volumes of growing cultivated products on irrigated lands, a new technology of storing, trading and distributing will be created”.
The project of national product distribution network will be implemented within 3 stages till 2022 and more than 24 WRCs will be built. It will allow to store, process and distribute about 4,8 tons of agricultural products. Already 5 WRCs will be functioning this year in 3 regions (Pavlodar, Almaty and Turkestan), it will enable to store additional 600 thousand tons of farm produce, – stressed Prime-Minister.
He added that created infrastructure “will ensure the absolute preservation of the fruits and vegetables collected, minimize losses, and, consequently, increase the interest of agricultural producers in increasing production.”
In addition, the presence of the developed WRC network in all regions "will solve the problem of food shortage during the off-season, when a sufficient availability of products on the market eliminates the possibility of price rise."
Already at the first stage of the WRC implementation, we expect the price drop for agricultural products up to 25% due to transparent pricing and new effective trade mechanisms. A well-built distribution network will allow us to control the margin at each link by using digital technologies, – Prime Minister is sure.
