BAKU, Azerbaijan, August 13. Kazakhstan's
Agency for Protection and Development of Competition has proposed a
set of measures to increase domestic sugar production and reduce
the country's dependence on imports.


This was announced in a report published by the Kazakh Agency
for Protection and Development of Competition, following an
analysis of the sugar market in Kazakhstan.


According to the agency, imported sugar accounted for 70.4% of
domestic consumption in 2025, while sugar produced from domestic
raw materials covered 29.6%. The target for domestic sugar
self-sufficiency was set at 68% for 2025 under the Comprehensive
Plan for the Development of the Sugar Industry for 2022-2026.


The agency noted that targets for sugar beet planting areas,
gross harvest, sugar production and domestic self-sufficiency have
not been achieved. Even the record sugar beet harvest in 2024 did
not fully ensure the utilization of processing facilities, as
existing capacities remain largely oriented toward processing
imported cane sugar.


“This indicates a persistent imbalance between the development
of the raw material base and processing capacities,” the agency
said.


Among the proposed measures are developing a separate sugar beet
seed production program, expanding domestic raw material and
processing capacities, and introducing long-term contracts between
sugar plants and sugar beet farms.


The agency also proposed gradually increasing domestic sugar
production, partially reducing imports, creating conditions for
guaranteed sales of domestic sugar and sugar-containing products,
and strengthening protection against dumping imports.


It also recommended considering restrictions on road imports of
sugar during periods when sugar is produced from domestic sugar
beet, as well as preparing a supply-and-demand balance for the
market.







The agency proposed strengthening oversight of sugar exchange
trading. It also recommended considering the exclusion of sugar
from the list of commodities traded on commodity exchanges, while
ensuring equal conditions for domestic and imported sugar.


The analysis found that increases in production by some domestic
producers were not accompanied by corresponding increases in sales
through commodity exchanges. The agency also identified cases of
imported sugar being subsequently exported to third countries and
called for monitoring such re-exports.


The agency additionally highlighted changes to regulations
governing the sugar market, including amendments to commodity
exchange trading rules and the introduction of a 16% VAT on
imported raw sugar under Kazakhstan's new Tax Code.


According to the analysis, the VAT requirement creates
additional financial pressure on sugar plants, tying up significant
funds for three to six months, while the agency considers this
inconsistent with the objectives of increasing the share of
domestically produced sugar.


The recommendations also include strengthening oversight of the
implementation of the 2022-2026 sugar industry development plan and
signing a protocol between China's General Administration of
Customs and Kazakhstan's Ministry of Agriculture on sanitary and
phytosanitary requirements for exports of sugar beet pulp from
Kazakhstan to China.


Following the analysis, the agency issued nine notifications to
wholesale sugar sellers about signs of violations of antimonopoly
legislation.


The agency said its recommendations could be included in a
roadmap for developing competition in Kazakhstan's sugar market,
with responsible government bodies assigned to implement the
proposed measures.