The Ministry of Economy and Commerce of the Kyrgyz Republic has released a justification for its decision to include cement on the list of socially significant goods, a designation that allows the government to regulate prices for essential items, including construction materials.
According to the ministry, the absence of state oversight has led to unjustified increases in cement prices, placing upward pressure on housing costs and hindering the construction of social and infrastructure projects.
“This situation limits the population’s access to quality, affordable housing and slows the country’s socio-economic development,” the ministry stated.
By classifying cement as a socially significant good, the government gains the authority to regulate its price. The move aims to stabilize the construction market, lower building costs, and improve housing affordability for the public.
Officials at the ministry expressed confidence that the measure would not cause any significant negative consequences. The only potential downside, they noted, would be a reduction in profits for cement manufacturers and intermediaries, primarily in conditions of market volatility where price ceilings may be imposed.
Kyrgyz economists support the move, arguing that state price regulation will help stabilize the domestic cement market, stimulate the construction industry, and improve the broader socio-economic outlook. They also believe it will bolster regulatory oversight of the construction sector.
The ministry further warned that the lack of effective pricing mechanisms poses risks of shortages or sudden price spikes during periods of heightened demand. In contrast, stable cement prices would boost confidence among construction firms, enabling better planning and project implementation.
To ease supply constraints, the Kyrgyz cabinet previously lifted a temporary ban on cement imports, aiming to satisfy a growing demand from construction companies and the general population through additional foreign supply.
