A. Khodzhanazarov proposed to compensate farmers in case of export restrictions

Aydarbek Khodzhanazarov, a Majilis deputy from the Respublica Party, addressed a number of questions to the Prime Minister concerning the negative consequences of the introduction of bans, quotas and export duties on the country's agricultural products, World of NAN reports.

"Over the past 3 years, the Kazakh government has imposed 8 bans, 5 quotas and 2 export duties on agricultural products. These decisions, according to expert estimates, resulted in 1 trillion tenge of damage to the industry. To remind, these were bans on the export of hides, farm animals, onions, cabbage, potatoes, wheat, etc.," - said Aidarbek Khodzhanazarov.

According to the data contained in the deputy's request, export restrictions have a negative impact on the Kazakhstani business, while importers receive significant benefits. Cited the example of the contract of a partner from Uzbekistan, which signed a deal to buy Kazakh wheat at a price of 520 dollars per ton in July 2022, but after the introduction of quotas bought the same products at a price of 350 dollars per ton in September. Such facts raise questions about the target orientation of the actions of our Government.

One of the objectives of the Government is to increase domestic processing in order to create jobs and reduce the rise in the cost of products. However, in the government's logic, these objectives are achieved by restraining exports, including bans on the export of products.

"Over the past three years, food inflation has increased by more than 50 percent. Government restrictions lead to damage, which producers have to compensate for by raising prices on the domestic market. For example, the price of wheat rose from 160 thousand tenge per ton in May 2022 to 185 thousand tenge per ton after the introduction of quotas, contrary to the stated goal of stabilizing prices, "- said the deputy.

Aidarbek Hodzhanazarov noted that the desire to increase the volume of processing is correct, but the selected measures to achieve this goal is erroneous. The MP cited examples of major investors who left Kazakhstan without finding support and dialogue from the government. In addition, restricting exports leads to higher prices, as the example of sunflower oil shows: after restrictions on the export of sunflower seeds, processing plant prices have more than doubled in three years, from 400 to 809 tenge per liter.

"Export bans will eventually lead to a shortage of domestic production and uncontrolled imports. Despite the desire for import substitution, Kazakhstani stores are increasingly filled with Russian and Belarusian products," stated the deputy.

Aidarbek Khodzhanazarov asked several questions to the government, including the readiness to be responsible for achieving the objectives to increase exports, despite the contradictory measures taken in this area. He also demanded specific figures and indicators demonstrating the effect of prohibitions and restrictions on exports.

As proposals to the government, the Respublica MP recommended that the procedure for imposing export restrictions should be made more complicated by establishing their reasons in law and conducting a regulatory impact analysis with discussions with industry participants. In addition, he suggested considering the mechanisms of compensation for lost profits for entrepreneurs and including representatives of industry associations and MPs in the Interdepartmental Commission, as well as reviewing the existing export bans and restrictions.

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