Kazakhstan to remove subsidy on bread

11/12/2015,

The Government of Kazakhstan plans to remove the subsidy on bread from 1 January 2016. This measure aims to create a more competitive market and promote investment in improved, more efficient technologies in the industry. Under the current subsidy system, competition among bread producers is minimal, they have little incentive towards becoming more efficient, and the subsidized prices do not specifically target the poor: the whole population benefits at the expense of the Government. Under the new system, should bread prices rise significantly, vulnerable populations could be targeted with assistance.

Country: Kazakhstan