18 Apr 2023 10:28

Kazakhstan creating trading cos in Uzbekistan, Pakistan and Tajikistan to buy food for below market price

ASTANA. April 18 (Interfax) - Kazakhstan is opening joint export-import companies in three countries in order to purchase food products for less than market prices and keep domestic food prices under control, the Kazakh Ministry of Trade and Integration said in a press release.

Kazakhstan's QazTrade and Uzbekistan's UzTrade have created a joint company, UzKaz Trade Ltd., which will operate on a parity basis. The new company will deliver vegetables from Uzbekistan to Kazakhstan directly without any resellers.

"It is important to note here that the company does not plan to make a profit or add a profit margin on imported products. It may only add a small margin to cover administrative expenses," said Nuraly Bukeikhanov, the director of QazTrade.

A similar joint company has been organized by Kazakhstan and Pakistan in the city of Lahore. In addition, QazTrade plans to register its own subsidiary in the city of Dushanbe (Tajikistan) in the near future.

"The export-import companies organized with Kazakhstan's participation will supply staples to the civic-oriented entrepreneurial corporations and largest retail chains. The joint ventures will not enjoy any preferences and will purchase products only if their prices are below the average market. This approach will help control the prices for certain goods," the press release says.

The joint ventures will also export Kazakhstan-made flour, fruits and vegetables, fats and vegetable oil to Uzbekistan, Pakistan and Tajikistan but at market prices.

QazTrade is a government organization, part of the Kazakh Ministry of Trade and Integration, providing support to small- and medium-sized businesses exporting finished products and other non-commodity goods.