Kazakhstan Ministry: No need to panic over bread prices

Kazakhstan's Ministry of Agriculture has moved to quell public anxiety over potential bread price increases, assuring that current conditions do not warrant panic. Vice Minister Azat Sultanov addressed concerns about harvest yields impacting prices, explaining that farmers' and consumers' definitions of a "good year" differ. While a large harvest benefits consumers, a smaller yield can be more profitable for farmers due to increased domestic market prices.

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Therefore, I think it is too early to fear that we will be left without bread or that bread will be expensive, and there is no need to panic.

Sultanov highlighted the stability of social bread prices, which have remained at 110 tenge per loaf for four years, irrespective of whether grain cost 180,000 tenge per ton or the current 90,000 tenge. He emphasized that the state is actively implementing measures to maintain this price point. "Therefore, I think it is too early to fear that we will be left without bread or that bread will be expensive, and there is no need to panic," Sultanov stated.

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While for us a good year means a large harvest, for them a good year is often when the harvest is small, because the price for their produce increases on the domestic market.

He further reassured that should unforeseen circumstances arise, the state possesses containment measures. The Ministry believes the current situation is not cause for concern. This comes as Almaty previously fixed the price of social bread until 2027 through an agreement with a local bakery, capping the retail markup at 15 percent. The Ministry of Agriculture had also recently addressed concerns regarding sugar prices.

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At the same time, I would like to note that both when grain was 180,000 tenge per ton four years ago and at the current price of 90,000, the price of social bread remains unchanged at 110 tenge on the shelf.