Social product costs surge by over 50% in Pavlodar region.
In the heart of Pavlodar, supermarkets have been under scrutiny due to inflated prices on essential goods, especially socially significant food products, surpassing limits by more than 50%. These concerning findings were unveiled during inspections conducted by the Department of Trade and Consumer Protection, as reported on the official website of the Ministry of Trade and Integration of Kazakhstan.
In the city of Pavlodar and surrounding areas like Ekibastuz, Aksu, and Terengulsky district, the team visited 68 trade subjects during the initial quarter of 2025, carrying out both scheduled and unscheduled inspections. Their efforts led to reduced prices on various items, including potatoes (down from 330 to 184 tenge per kilogram), carrots (from 105 to 69 tenge per kilogram), buckwheat groats (from 450 to 339 tenge per kilogram), salt (from 120 to 109 tenge per kilogram), macaroni (from 430 to 388 tenge per kilogram), and chicken meat (from 1,400 to 1,322 tenge per kilogram).
Despite these positive results, 58 trade subjects were discovered to be in violation. They exceeded the maximum trade markup limits, with some reaching striking levels — 106% for potatoes and 75% for carrots. The buckwheat groats were guilty of a lesser but still concerning 52.5% overshoot, while chicken meat saw a 27.2% markup increase. Following the discovery of these violations, administrative measures were taken, and orders were issued to rectify the situations.
The Ministry reminded the public that, according to the Law of the Republic of Kazakhstan "On the Regulation of Trade Activities," the maximum trade markup on socially significant goods should not surpass 15% of the wholesale or purchase price.
Recent periods have witnessed a slight increase in prices for these essential goods, with average food price inflation reported at 6.2% over the year. However, exceptions like eggs, rice, buckwheat groats, carrots, and certain other products have shown inconsistent trends. In April, a comparison of potato prices in Kazakhstan and other countries worldwide revealed mixed findings.
When stirring these trends with the broader economic context of Kazakhstan, a few relevant insights surfaced: first, the monthly consumer price index in March 2025 saw a 1.3% increase, with food prices rising 1.6% during the same period. Though these reflect national data, measures to curb markups in Pavlodar aim to combat similar inflationary pressures locally; second, the introduction of 40 billion tenge ($79.7 million) in wheat export subsidies in 2025 aimed to manage domestic grain surpluses, which, though focused on exports, might indirectly stabilize food prices; third, Kazakhstan's privatization program and challenges with non-market pricing in energy sectors hint at systemic issues that could impact price control enforcement, potentially resulting in violations due to gaps in market regulations or localized supply chain distortions.
In brief, the ongoing control measures in Pavlodar aim to counteract inflationary pressures and curb price increases on essential food products. However, the long-term success of these efforts could be complicated by factors like reduced retailer profitability, supply shortages, underreporting of costs, off-the-books sales, quality downgrades, and reliance on state interventions rather than market-based solutions. Further data on enforcement actions and post-implementation price audits would provide more insights into the specific outcomes in Pavlodar.
- The Department of Trade and Consumer Protection in Kazakhstan's Ministry of Trade and Integration conducted inspections in Pavlodar and discovered that 58 trade subjects were violating the maximum trade markup limits on socially significant goods.
- The team's findings revealed that potatoes and carrots had the highest violations, with trade markups reaching 106% and 75% respectively, while buckwheat groats, chicken meat, salt, macaroni, and potatoes also showed significant markups exceeding the set limit.
- Following the discovery of these violations, administrative measures were taken and orders were issued to rectify the situations, but the long-term success of these efforts could be affected by factors such as reduced retailer profitability, supply shortages, underreporting of costs, and relying on state interventions rather than market-based solutions.
- The ongoing control measures in Pavlodar aimed to counteract inflationary pressures and curb price increases on essential food products, but challenges with non-market pricing in energy sectors and potential localized supply chain distortions could impact price control enforcement.
