The Ministry of Agriculture of the Russian Federation has prepared a draft government decree to conclude agreements with producers and suppliers of mineral fertilizers to reduce product prices - such agreements may be valid until July 1 of this year, follows from a document published on the federal portal of draft legal acts.
“To reduce and maintain prices for mineral fertilizers, the Ministry of Industry and Trade of the Russian Federation, together with the Ministry of Agriculture of the Russian Federation, conclude agreements with economic entities - producers and suppliers of mineral fertilizers,” the draft text says.
Agreements will be considered valid if certain conditions are met. First, the subject of the agreements is the sale of mineral fertilizers to farmers on the territory of Russia, and the second is that agreements should not affect the supply and sale of other types of goods. "This resolution comes into force from the date of its signing and is valid until July 1, 2021," - added to the draft.
The explanatory note to the project notes that the conclusion of the agreements "will allow stabilizing the prices for mineral fertilizers in the domestic market for the regular conduct of spring field work by farmers in the Russian Federation in 2021."
The head of the Ministry of Agriculture of the Russian Federation Dmitry Patrushev said last week that the ministry proposes to fix prices for the main types of mineral fertilizers in Russia for at least two to three months. The agency proposes to freeze prices for ammonium nitrate, urea, azofoska and ammophos. The average cost of fertilizer for 2019 plus the projected inflation rate for 2021 is used as the price base.