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.
