Cabinet of Ministers of Kyrgyzstan is preparing new support measures for the domestic flour milling industry and plans to step up negotiations with Kazakhstan to ensure stable wheat supplies.
According to the Ministry of Water Resources, Agriculture and Processing Industry, the issue was discussed at a meeting on March 31 chaired by Erlist Akunbekov, with participation of government agencies and the Association of Flour Milling Enterprises.
The discussion focused on securing long-term wheat supply contracts with fixed prices and volumes. It is noted that rising fuel costs and the geopolitical situation are affecting the sector.
Domestic mills are currently operating at around 50 percent capacity due to raw material shortages and competition from illegally imported flour that enters the market without VAT payments.
Following the meeting, the Cabinet instructed relevant bodies to develop interest-free financing mechanisms based on Islamic finance principles for the construction of grain storage facilities, as well as to strengthen border controls to curb shadow imports.
The ministry also confirmed that negotiations with Kazakhstan have begun, with supply and transit issues expected to be resolved in the near future.
