Three Years of Alcohol Monopoly. Has the Alcohol Industry Been Brought Out of the Shadows? (Video Report)

Ирэн Орлонская Economy
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The introduction of a state monopoly on the production of ethyl alcohol in Kyrgyzstan has sparked much debate among producers. The main reason for this decision was the need to combat counterfeit products and the shadow market. Currently, the Kara-Baltin Alcohol Plant is the only producer in the country.

The plant, which opened in 1942, ceased operations in 2015 but was relaunched in 2020.

Changes Over Three Years

According to the plant's director, Aman Ibraev, in 2021 the enterprise operated at a loss of 48 million soms. By 2023, the situation changed, and profits amounted to 400 million soms.

“The state monopoly has allowed us to control both the production and sale of alcohol, which has increased tax revenues. If in 2021 the excise taxes were around 1 billion soms, by 2024 they will exceed 4 billion,” adds Ibraev, noting that the raw materials for alcohol are molasses and wheat.

The chief technologist of the plant, Batyrbek Zhangaziev, who declined an offer to work abroad, is confident in the competitiveness of Kyrgyz products. “We adhere to all necessary standards, use natural ingredients, and special aging technologies. We purchase raw materials from abroad, and here we produce and age cognac using modern filters,” he asserts, adding that the plant's technologies allow for the creation of high-quality products.

Production Directions

The alcohol produced at the plant is used not only for alcoholic beverages. The "Ideal-Pharm" branch is engaged in the production of antiseptics and cosmetics. Despite its small size, the company actively operates in the market and is the only enterprise in Kyrgyzstan with a GMP certificate, which allows it to export its products. More than 90% of the goods produced are sent to Russia, and antiseptics are also in demand in the domestic market.

International Recognition

The Kara-Baltin Alcohol Plant plans to focus on the quality of its products and participate in international competitions. In 2024, at a competition in Moscow, the plant's alcohol received a silver medal, and in Minsk, it won a gold medal for premium-class alcohol.
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