Does the future of Kazakhstan lie with Russian products?

Representatives of the food industry do not see bright prospects for the development of the domestic industry in the near future. For they cannot compete with Russian products at a low price, World of NAN reports with reference to NCE.

According to Aizhan Naurzgaliyeva, head of the Association of Sugar, Food and Processing Industries, Kazakh sugar producers cannot sell their products due to competition with Russian products.

"Today the cost of Kazakh sugar is 440 tenge, while Russian sugar is 350 tenge. Sugar factories are forced to stop production because of overcrowded warehouses," she said.

The business community believes that the government should protect domestic processors, which will consequently ensure the country's food security.

"Kazakhstan risks becoming dependent on Russian food imports," said Bokeykhan Abishev, general director of Borte Milka.

According to processors, Russia, having displaced Kazakh producers and becoming one of the main players in our market, will manipulate its position, as it did in 2022 with the closure of sugar exports.

"Now Russian raw milk to Kazakhstani milk processing plants already comes at 130 tenge and this is including VAT, while the cost of ours is 200 tenge," - identified another problem the head of IE "Kaverina S" Sergey Kaverin.

The processors are requesting assistance by canceling the ongoing pilot project to introduce labeling for excisable goods, finalizing the VAT refund on exports and making government subsidies more accessible.

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