APDC PRESENTS RECOMMENDATIONS TO REDUCE THE SUGAR MARKET’S IMPORT DEPENDENCE

APDC PRESENTS RECOMMENDATIONS TO REDUCE THE SUGAR MARKET’S IMPORT DEPENDENCE

13.08.2026 10:56:40 218

The Agency for Protection and Development of Competition of the Republic of Kazakhstan (APDC) has completed an analysis of the sugar market in Kazakhstan. The results showed that, as of the end of 2025, the share of imported sugar in the domestic market reached 70.4%, while domestic production accounted for only 29.6% of domestic consumption. This indicates that, despite measures being taken to develop domestic production, Kazakhstan’s sugar industry remains import-dependent. The majority of domestic demand is met through the processing of imported raw cane sugar and supplies of finished imported sugar.

A number of target indicators set out in the Comprehensive Plan for the Development of the Sugar Industry for 2022–2026 and the Concept for the Development of the Agro-Industrial Complex have not been achieved. In particular, these include indicators for sugar beet acreage, gross harvest, sugar production and the level of self-sufficiency of the domestic market. At the same time, even the record sugar beet harvest in 2024 did not allow processing enterprises to be fully utilized, as the existing capacity structure is largely oriented towards processing imported raw cane sugar. This indicates that the imbalance between the development of the raw material base and processing capacities persists.

The analysis demonstrated the need to improve the efficiency of the existing sugar exchange trading model by strengthening oversight by the Ministry of Trade and Integration over compliance with the legislation on commodity exchanges. It was established that, for certain domestic producers, an increase in production volumes was not accompanied by a corresponding increase in sales through commodity exchanges. There is also a need to ensure uniform conditions for the circulation of domestic and imported sugar. In addition, individual cases of subsequent export of imported sugar to third countries have been identified, requiring further assessment of the impact of commodity flows on the supply of the domestic market.

Following the analysis, APDC issued 9 notices to wholesale sugar market entities on signs of violations of antimonopoly legislation. Proposals were submitted to the relevant government bodies on developing the domestic raw material base and processing capacities, introducing long-term contracts between sugar factories and sugar beet-producing farms, strengthening oversight of exchange trading, monitoring sugar re-exports, and reducing the domestic market’s dependence on imports. It is proposed that the relevant recommendations be incorporated into the Roadmap for the Development of Competition in the Sugar Market, with the responsible government bodies identified.

Source : https://www.gov.kz/memleket/entities/zk/press/news/details/1273416?lang=ru