Kaindy sugar factory exports beet to Kazakhstan at a loss, the head of the Russian-Kyrgyz Development Fund Kubanychbek Kulmatov said today at a meeting with journalists.
According to him, the fund didn't delay funding to farmers. The problem arose from the fact that the plant can't process the collected crop of sugar beet, which was particularly large this year.
Farmers planted 11,000 hectares of sugar beets and harvested 600,000 tons. However, the plant can process only 450,000 tons. Last year the acreage amounted to 4,500 hectares. "Farmers are not affected, since the contract was concluded in the spring. They got money for seeds, fuel, equipment and guarantee from the factory that the entire production volume will be bought. Now the plant at a loss has to export beet to Kazakhstan," Kubanychbek Kulmatov said.
In 2017, it is planned to plant 17,000 hectares of beet. Consequently, the additional capacity is needed. Russian-Kyrgyz Development Fund has approved a project to support two sugar factories in Chui region - Koshoy JSC and Kaindy-Kant JSC by investing $15.5 million.