The Federal Antimonopoly Service approved methodological recommendations for the development of trade policies for mineral fertilizer producers, reports service official website.
This additional measure will provide domestic farmers with raw materials on a non-discriminatory basis.
The recommendations were developed in accordance with the Decree of the Government of the Russian Federation* and affect the sale of nitrogen and nitrogen-containing fertilizers, which occupy a significant share in the structure of fertilizer consumption.
Producers are encouraged to develop sales policies that provide for marginal selling prices for these types of fertilizers, which are formed on the basis of base prices, the average cost for the period May-July 2021 and indexation below the current inflation rate.
The FAS Russia emphasizes that it is recommended to coordinate drafts of such documents with the agency beforehand.
In addition, the methodological recommendations** for distributors provide for a mark-up of a certain value from the marginal selling price of fertilizers. They are encouraged to provide farmers with reports on the actual price and volume of raw materials purchased, the final margin, storage and transportation costs. If the distributor does not comply with this, then the farmers have the right to terminate the agreement with him.
According to the service, the introduction of an additional mechanism will ensure the satisfaction of demand in the domestic market of mineral fertilizers and will contribute to ensuring the country's food security.
Information:
*Decree Government of the Russian Federation dated May 30, 2022 No. 990;
**Order FAS Russia dated May 31, 2022 No. 417/22.