Kazakhstan proposes measures to cut sugar import dependence, boost domestic production
Kazakhstan plans measures to boost domestic sugar production after imports met 70.4% of consumption in 2025, far above the government’s self-sufficiency target. Proposals include expanding sugar beet cultivation and processing, long-term farmer-miller contracts, stronger import safeguards and improved market monitoring to reduce import dependence.
Baku, Azerbaijan: Kazakhstan has proposed a set of measures to increase domestic sugar production and reduce its heavy dependence on imports after an analysis found that imported sugar accounted for 70.4% of domestic consumption in 2025, Trend.az reported.
The Agency for Protection and Development of Competition said domestically produced sugar from local raw materials met only 29.6% of consumption last year, well below the government’s target of 68% under the 2022-2026 Comprehensive Plan for the Development of the Sugar Industry.
The agency said targets for sugar beet acreage, production, processing and domestic self-sufficiency had not been achieved. Even the record sugar beet harvest in 2024 was insufficient to fully utilise existing processing capacity, which remains largely geared towards imported cane sugar.
“This indicates a persistent imbalance between the development of the raw material base and processing capacities,” the agency said.
Among the proposed measures are a dedicated programme for domestic sugar beet seed production, expansion of beet cultivation and processing capacity, and long-term contracts between sugar mills and farmers to ensure a stable supply of domestic raw material.
The agency also called for a gradual increase in domestic sugar production, a reduction in imports and measures to guarantee markets for domestically produced sugar and sugar-containing products. It recommended stronger safeguards against dumping and consideration of restrictions on road imports during periods when mills are processing domestically grown sugar beet.
The agency proposed preparing a regular supply-and-demand balance for the sugar market and strengthening oversight of sugar trading on commodity exchanges. It also recommended considering the removal of sugar from the list of commodities traded on exchanges while maintaining equal conditions for domestic and imported sugar.
The review found that increased production by some domestic manufacturers had not been matched by corresponding growth in sales through commodity exchanges. It also identified cases in which imported sugar was subsequently exported to third countries and called for closer monitoring of such re-exports.
The agency raised concerns over the impact of a 16% VAT on imported raw sugar introduced under Kazakhstan’s new Tax Code. It said the tax could tie up substantial funds at sugar mills for three to six months, creating additional financial pressure and potentially working against efforts to increase domestic sugar production.
The recommendations also include closer monitoring of the implementation of the 2022-2026 sugar industry development plan and an agreement between China’s General Administration of Customs and Kazakhstan’s Agriculture Ministry on sanitary and phytosanitary requirements for exporting sugar beet pulp from Kazakhstan to China.
Following its market analysis, the agency issued nine notifications to wholesale sugar sellers over suspected violations of antimonopoly legislation.
The proposed measures could form part of a roadmap for developing competition in Kazakhstan’s sugar market, with government agencies assigned responsibility for implementing the recommendations.
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Source : ChiniMandi
