New 15% Price Cap on Essential Foods Sparks Chaos for Traders
New rules on socially significant food products (SSFPs) have come into force without warning. The list of regulated items has grown from 19 to 30, with trade markups now capped at 15%. Authorities insist the changes aim to control prices—but businesses face immediate penalties for non-compliance. The updated regulations, introduced at the start of the year, cover a broader range of goods than before. Price controls now apply regardless of packaging, volume, or production cost. Even expensive items fall under the same strict markup limits as cheaper alternatives.
Transport costs have become a major issue for traders. Most SSFPs are imported, often travelling over two thousand kilometres before reaching consumers. Under the new rules, logistics expenses can no longer be included in the 15% markup, squeezing profit margins further. Enforcement has been swift. Since January, 32 inspections have taken place, resulting in fines totalling over 400,000 tenge. Penalties for exceeding the markup were tightened last March, with first-time offenders now facing immediate fines. The ministry responsible has acknowledged the challenges but states it will review the rules only after assessing their impact. Industry experts warn of potential consequences. Supply chain disruptions, reduced product variety, and even local shortages could occur if traders struggle to adapt. The lack of a transitional period has left many businesses scrambling to comply.
The expanded SSFP list and stricter markup rules are now in full effect. Traders must absorb higher transport costs while keeping prices within the 15% limit. Authorities have signalled a willingness to adjust the policy—but only after evaluating its real-world effects.
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