At a recent meeting of the Jogorku Kenesh Committee on the Fuel and Energy Complex, Kyrgyz Deputy Alisher Kozuev proposed lifting the ban on cement imports from Uzbekistan, citing concerns over monopolistic practices that drive up prices for consumers.
Kozuev highlighted that the current ban bolsters “individual producers” within Kyrgyzstan, creating a monopoly that negatively impacts the cost of construction materials. He noted that prior to the ban, Uzbek cement was sold at a price range of KGS 0.6 to KGS 1 ( $0.01) lower than that of local cement, significantly affecting consumer costs. He emphasized that increased competition would reduce prices and improve product quality.
Kozuev raised questions regarding the rationale behind maintaining the ban on Uzbek cement for the past 2-3 months.
In response, Deputy Minister of Economy and Commerce Choro Seyitov explained that the ban was instituted to protect local producers, particularly cement plants in the Osh region, which he claimed struggled to compete with imports.
“If we allow Uzbek cement and slate into our market, it would jeopardize our factories' viability, resulting in job losses and decreased tax revenues,” Seyitov asserted.
Seyitov also pointed out that some Uzbek goods fail to meet local standards and do not pass certification. However, Kozuev stressed the need to prioritize the welfare of consumers and affordability over the protection of individual factories.
The deputy minister responded to Kozuev's claims by citing instances of price dumping by Uzbek cement producers, stating that some importers are undercutting prices, which poses a threat to local manufacturers.
The Competition Committee has recently identified multiple instances of cement price dumping. In July, an anti-dumping case was initiated against the Shangfeng cement plant, following accusations from local producers that the joint venture was underpricing its products. The plant faced a fine of UZS 4.9bn ($384,602) as a consequence.
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