Kazakhstan needs transparent procedure to stabilize market amid fluctuating prices - president

ASTANA. Sept 13 (Interfax) - The Kazakh government should adopt a "concrete and transparent procedure" to stabilize the domestic grain and other markets that are key to the national economy, President Kassym-Jomart Tokayev said.

"The situation with the national currencies in Kazakhstan's neighbors increases the likelihood of price fluctuations for goods that are important for our country. The government must have a concrete and transparent stabilization procedure for the internal grain market and other markets that are important for our national economy," Tokayev said at a meeting with Kazakh business leaders on Tuesday.

National businesses should be clear about which price stabilization tool the government applies and on what terms, "be it purchasing agricultural raw material at fixed prices, banning the import of fuels and lubricants, tapping national reserves, [or] banning exports or quotas," the president said.

In the medium term, the country should phase out non-market mechanisms for supporting business, "chiefly, blanket subsidizing regardless of a sector's priority status, a project's significance [or] its impact on the economy," he said.

"It's necessary to switch to guarantee mechanisms and non-financial support measures. State price regulation and restrictions should be replaced by 'soft management' of supply and demand," Tokayev said.