ORDER OF THE GOVERNMENT OF THE KYRGYZ REPUBLIC

of November 27, 2008 No. 651

About approval of the Regulations on procedure for application of interventions in the market of agricultural products, raw materials and food

According to the laws of the Kyrgyz Republic "About food security of the Kyrgyz Republic", "About the state material reserve", "About public procurements" and other regulatory legal acts of the Kyrgyz Republic concerning purchase and product sales for the state and other needs for the purpose of ensuring food security of the Kyrgyz Republic, organization of events on price stabilization on agricultural products, raw materials and food in case of crisis situations in the domestic food market the Government of the Kyrgyz Republic decides:

1. Approve the enclosed Regulations on procedure for application of interventions in the market of agricultural products, raw materials and food.

2. To the ministries, the state committees, administrative departments, other executive bodies, local public administrations and local government bodies of the Kyrgyz Republic to accept the above-named Provision to management and strict execution.

3. This Resolution becomes effective from the date of official publication.

4. To impose control over the implementation of this Resolution on department of agro-industrial complex and environmental management and department of economy, trade, tourism and entrepreneurship of Government office of the Kyrgyz Republic.

Approved by the Order of the Government of the Kyrgyz Republic of November 27, 2008 No. 651

Regulations on procedure for application of interventions in the market of agricultural products, raw materials and food

1. This Provision is developed according to the laws of the Kyrgyz Republic "About food security of the Kyrgyz Republic", "About the state material reserve" and "About public procurements", other regulatory legal acts of the Kyrgyz Republic concerning purchase and product sales for the state and other needs and regulates interaction of the ministries, state committees, administrative departments, other executive bodies, local public administrations and local government bodies of the Kyrgyz Republic on implementation of the state purchasing interventions and the state commodity interventions for stabilization of the market of agricultural products, raw materials and food.

2. The main objective of carrying out interventions in the market of agricultural products, raw materials and food is timely regulation of situation in case of critical jump in prices of food by creation of necessary state reserve of agricultural products, raw materials and food with the subsequent timely market saturation or their withdrawal from the market for price stabilization, taking into account studying and the analysis of situation in the internal and world markets of food.

3. Measures for stabilization of the market of agricultural products, raw materials and food are carried out by the organization:

- the state commodity intervention which is applied in case of deficit in the market of agricultural products, raw materials and food of their corresponding types, and also in case of the crisis growth of market prices of agricultural products, raw materials and food, their sale from the state reserve;

- the state purchasing intervention applied in cases when rural producers are not able to sell the made agricultural products, raw materials and food because of low demand or in cases when market prices of agricultural products, raw materials and food below cost. The state purchasing intervention is carried out by authorized state body, way of the corresponding purchases of agricultural products, raw materials and food at agricultural producers.

4. Authorized state body on the organization and carrying out the state purchasing interventions and the state commodity interventions for stabilization of the market of agricultural products, raw materials and food is the State public procurements agency and material reserves under the Government of the Kyrgyz Republic (further - state procurements State agency).

5. The state procurements state agency provides in accordance with the established procedure necessary information on the carried-out work on the organization and carrying out the state purchasing interventions and the state commodity interventions of agricultural products, raw materials and prodovolpstviye in the Secretariat of Council for food security of the Kyrgyz Republic.

6. Financing of the state purchasing interventions and the state commodity interventions is made for the account:

a) means of the State agency on state procurements, within the means provided by the republican budget of the Kyrgyz Republic for the corresponding year;

b) the income which is formed from application of markups, and the income which is formed from difference in cost of the material values released and pledged in the state reserves, carrying out intervention transactions;

c) the raised borrowed financial resources and means of the commercial organizations and the humanitarian assistance of the donor organizations;

d) other sources determined by the Government of the Kyrgyz Republic.

7. The director of the State agency on state procurements provides effective use of the money allocated from the republican budget for carrying out the state purchasing interventions and the state commodity interventions bears responsibility for their target use, and also for safety of agricultural products, raw materials and food, acquired as a result of carrying out the state purchasing interventions, in storage locations according to the legislation of the Kyrgyz Republic.

8. The list and amounts of agricultural products, raw materials and food for carrying out the state purchasing interventions and the state commodity interventions are annually determined by the Ministry of Agriculture, Water Resources and Processing Industry of the Kyrgyz Republic together with the Ministry of Economic Development and Trade of the Kyrgyz Republic, are considered by Council for food security of the Kyrgyz Republic and affirm the Government of the Kyrgyz Republic.

9. Ministry of Agriculture, Water Resources and Processing Industry of the Kyrgyz Republic:

- performs monitoring of environment of the domestic and world market of agricultural products, raw materials and food;

- prepares the certified information;

- on the basis of balances of the predicted production and use of agricultural products, raw materials and food determines possible amounts of excesses or lack of these products in the food market by regions and in general by the republic;

- together with the Ministry of Economic Development and Trade of the Kyrgyz Republic develops offers on amounts of agricultural products, raw materials and food on carrying out the state purchasing interventions and the state commodity interventions according to the nomenclature approved by the Government of the Kyrgyz Republic.

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