Cheap sugar imported in large quantities from Kazakhstan is bad for Kyrgyz producers

Almaty. April 21. Silkroadnews – Cane sugar imported from Kazakhstan in large amounts has a negative impact on the domestic Kyrgyz producers, KyrTAG quotes private entrepreneur Erlan Dzhuzupov saying.

“Kazakhstani cane sugar comes to us in large amounts. Though, according to the agreement on the CIS free trade zone, there are provisions saying Kazakhstan has received a quota for the raw sugar supply from the third countries. At the same time, they do not have the right to sell the processed sugar in the CIS,” he said at the round table “Customs Union: economic prospects of Kyrgyzstan” on Thursday.

The businessman also added the same norms are applied in relation to Armenia, Belarus and Kyrgyzstan.  
“Armenia also processes the cane sugar and has no right to sell it within the CIS countries. The quota of 100 thousand tons of sugar has been provided for Kyrgyzstan as well. This rule will remain in force in the coming years. We shall also need refine it and realize for the domestic consumption purposes. We have no right to sell to neighboring countries,” the businessman noted.

He emphasized that despite the ban in force, the local authorities are doing nothing to prevent the cheap sugar supplies from Kazakhstan.

“It hits the local business. Thus, it affects the taxes, the budget does not receive big amounts of tax payments. If there is an agreement between the two countries, it must be abided. And our sugar producers, “Kaindy Kant” in particular, also object to such deliveries. We spoke at the parliament, yet there are no results. In Jalal-Abad region the state committee for national security catches the trucks. It all results in letting the trucks go, as they work on the patent,” the businessman said.