In Kyrgyzstan, the share of imported flour has decreased due to import substitution and the fiscalization of supplies, - Association of Millers

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- In Kyrgyzstan, there is a noticeable reduction in the share of imported flour against the backdrop of active import substitution in the milling industry. In 2019, this figure reached 85%, but today domestic millers control about 60-70% of the market. This was stated by Rustam Junushov, president of the Millers Association, in an interview with the radio.

He noted that the high dependence on imports led to a flour shortage when the borders were closed; however, the situation has stabilized at present.

Junushov also pointed out one of the main problems in the industry – unaccounted and smuggled flour supplies, which created competitive advantages for shadow producers. Currently, such supplies have practically ceased.

“Now all flour supplies go through fiscalization, and not a single kilogram is leaving unaccounted for,” he emphasized.

The president of the Association added that the cessation of gray schemes contributed to an increase in production and an increase in tax revenues. If in 2018 and 2019, 8-9 enterprises in the industry contributed 133-155 million soms to the budget, then in 2021 this amount rose to 200 million, in 2022 to 250 million, in 2023 to 350 million, and in 2024 an increase to 487 million soms is expected. The forecast for 2025 suggests further growth in tax revenues.

Moreover, Junushov added that importers who previously used unofficial schemes have switched to legal supplies, which provided an additional approximately 200 million soms to the budget.

According to him, this has allowed for the compensation of lost budget revenues due to the benefits granted to the industry and has created conditions for the further development of the milling production.
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