Fruit and Vegetable Prices Spiral Upwards
Fruit and Vegetable Prices Spiral Upwards
The price of fruit and vegetables in Kazakstan is racing upwards as suppliers in neighbouring states sell their produce elsewhere. NBCentralAsia observers say the government needs to tackle the crisis by reducing customs duty on import, reduce the influence of intermediary traders and focus on developing the domestic food industry.
On July 9, the ministry of agriculture announced that it is drafting a strategy to make fruit and vegetables available at affordable prices. Ministry officials noted that poor trade mechanisms are responsible for the an annual price rise of agricultural products.
Deliveries of fruit and vegetables from traditional suppliers in Uzbekistan have fallen this year, as growers in that country find they can earn more by exporting to Russia.
NBCentralAsia analysts say that to avoid a supply crisis, Kazakstan should develop its own food industry while stimulating imports by cutting tariffs and curbing bribery on its borders.
Valery Markov, an advisor to the Eurasian Economic Community, Eurasec, a regional grouping of former Soviet states, says the shortfall in supply now seen in Kazakstan could have been avoided if international agreements had been adhered to.
“We should ensure that agreements reached among Eurasec members are fulfilled. Serious steps must be taken to lift all trade barriers,” said Markov. “Borders should be transparent and open.”
Kanat Berentaev, an expert from the Centre for Public Issues, says rising prices and reduced supplies from Uzbekistan and Kyrgyzstan are attributable to two causes – corruption among border officials and market domination of secondary dealers. Trading among these intermediaries can doubles or even triple the final price of the product. One way to prevent this would be to draw up contracts between agricultural suppliers abroad and the wholesale markets in Kazakstan that sell to retailers.
Berentaev says the government should draft a “food programme” that sets out in detail how farming should operate.
“Peasants who own small plots of land cannot grow crops using modern technology,” explained Berentaev. “So we need to define what counts as a viable size of farm.”
(News Briefing Central Asia draws comment and analysis from a broad range of political observers across the region.)
On July 9, the ministry of agriculture announced that it is drafting a strategy to make fruit and vegetables available at affordable prices. Ministry officials noted that poor trade mechanisms are responsible for the an annual price rise of agricultural products.
Deliveries of fruit and vegetables from traditional suppliers in Uzbekistan have fallen this year, as growers in that country find they can earn more by exporting to Russia.
NBCentralAsia analysts say that to avoid a supply crisis, Kazakstan should develop its own food industry while stimulating imports by cutting tariffs and curbing bribery on its borders.
Valery Markov, an advisor to the Eurasian Economic Community, Eurasec, a regional grouping of former Soviet states, says the shortfall in supply now seen in Kazakstan could have been avoided if international agreements had been adhered to.
“We should ensure that agreements reached among Eurasec members are fulfilled. Serious steps must be taken to lift all trade barriers,” said Markov. “Borders should be transparent and open.”
Kanat Berentaev, an expert from the Centre for Public Issues, says rising prices and reduced supplies from Uzbekistan and Kyrgyzstan are attributable to two causes – corruption among border officials and market domination of secondary dealers. Trading among these intermediaries can doubles or even triple the final price of the product. One way to prevent this would be to draw up contracts between agricultural suppliers abroad and the wholesale markets in Kazakstan that sell to retailers.
Berentaev says the government should draft a “food programme” that sets out in detail how farming should operate.
“Peasants who own small plots of land cannot grow crops using modern technology,” explained Berentaev. “So we need to define what counts as a viable size of farm.”
(News Briefing Central Asia draws comment and analysis from a broad range of political observers across the region.)
