New food price controls spark supply chain chaos and retailer backlash

New trade regulations on socially significant food products (SSFPs) have taken effect without warning. Businesses now face stricter price controls, with the list of regulated items expanding from 19 to 30. The sudden changes have left retailers struggling to adapt, raising concerns over potential shortages and reduced product choices. The updated rules cap trade markups at 15% for all SSFPs, regardless of packaging, volume, or production cost. Previously, 19 items were regulated; now, 30 fall under the same strict pricing. Retailers argue that logistics and transport expenses—often as high as 15%—can no longer be included in the markup, making some products unprofitable to stock. Bakir Bekirov, director of the Mister Apelsin supermarket chain, highlighted that premium vegetable oils, for example, may disappear from shelves due to the tight margin restrictions.

Since January, authorities have conducted 32 inspections to enforce the new limits. Murzakhan Yerkanov, head of the Trade and Consumer Rights Protection Department, reported fines totalling over 400,000 tenge for markup violations. Natalya Lapshina, chair of the Kostanay Regional Chamber of Entrepreneurs’ trade council, noted that entire product categories now face strict oversight, complicating supply chains. Wholesalers, who play a crucial role in distribution, are also feeling the pressure. Julia Khoroshenko, a wholesale entrepreneur, warned that the new model treats them as an unnecessary link, ignoring their function in moving goods to market. Most SSFPs are imported, yet transport costs are excluded from the final price calculation, further squeezing profit margins.

The abrupt introduction of these rules has disrupted supply chains and left businesses with little room to adjust. With logistics costs banned from markups and inspections already underway, retailers and wholesalers face financial strain. The outcome could mean fewer product options for consumers and potential gaps in availability across some regions.