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

Ирина Орлонская Economy
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Currently, Kyrgyzstan is experiencing significant import substitution in the milling industry. In 2019, imported flour accounted for 85% of the total market volume, while today domestic producers control about 60–70% of this segment. This was reported by the president of the Millers Association, Rustam Junushov, in an interview on the radio.

Junushov noted that the high dependence on imports was the reason for the flour shortage after the borders were closed, but the situation has now normalized.

He also emphasized that one of the main problems in the industry had previously been smuggled and unaccounted flour supplies, which created unequal conditions for legal producers. According to him, such supplies have practically ceased at present.

“Currently, not a single kilogram of flour goes unaccounted for. All supplies are under fiscal control,” he added.

The president of the Millers Association noted that the cessation of gray schemes has contributed to the growth of production and an increase in tax revenues. According to him, in 2018–2019, 8–9 enterprises in the industry contributed between 133 and 155 million soms to the budget, while in 2021 this amount increased to 200 million soms, in 2022 to 250 million, in 2023 to 350 million, and in 2024 to 487 million soms. It is projected that tax contributions will continue to grow in 2025.

Moreover, according to Junushov, importers who previously used unofficial schemes have begun to make legal supplies, which added about 200 million soms to budget revenues.

Junushov concluded that thanks to these changes, it has been possible to compensate for budget losses associated with providing benefits to the industry and to create favorable conditions for the further development of the milling industry.
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