Supermarkets in Astana, Kazakhstan, including the Small and EuroSpar chains, have implemented a sales restriction on potatoes, capping purchases at 5 kilograms per customer. The Department of Investment and Entrepreneurship Development in Astana stated that this measure aims to deter speculation, without providing a timeline for when the restrictions might be lifted.
In a sudden turn of events, Kazakhstan witnessed a sharp increase in potato prices, as reported by the Bureau of National Statistics. This price hike occurred within a week, from January 14 to 21, with an average annualized increase of 57.8% across the nation. Astana, in particular, saw potato prices doubling, reaching between 400 and 500 KZT ($0.96) per kilogram. The Ministry of Agriculture (MOA) has attributed this surge to speculative activities by intermediaries, leading to a gap between the prices of agricultural producers and those at retail outlets.
To combat the issue of speculation, local governments began releasing potatoes from government stabilization funds at reduced prices, ranging between 115 and 130 KZT ($0.25) per kilogram. These actions were intended to stabilize prices until the arrival of the new harvest. Despite over 62,000 tons of potatoes being in reserve, excluding trade network stocks, a new challenge emerged as small retailers started buying potatoes in bulk from supermarkets to resell at inflated prices. Consequently, supermarkets in Astana imposed a 5-kilogram limit on potato purchases per customer.
Furthermore, the Ministry of Trade and Integration (MTI) facilitated an agreement with major supermarket chains for the direct purchase of 1,500 tons of potatoes from farmers, ensuring a steady supply chain. The MTI emphasized the need for stricter market monitoring and better coordination between agricultural producers and retailers. Additionally, to stabilize the market, Kazakhstan imposed a six-month export restriction on potatoes to non-Eurasian Economic Union (EAEU) countries in early January.
These measures reflect the government's multifaceted approach to addressing speculative practices and ensuring market stability while maintaining affordability for consumers in Kazakhstan.
Source: TTCA
