The leading producers of mineral fertilizers of the Russian Federation, members of the Russian Association of Fertilizer Producers (RAPU), have decided to extend the period of price containment for their products until December 31, 2021, the RAPU said in a statement.
The association includes, among other things, the structures of Phosagro, Akron and Eurochem.
“The largest Russian producers of mineral fertilizers made voluntary decisions to extend the price containment regime for their products until December 31, 2021. These measures are aimed at improving the level and quality of training farmers for spring field work in the face of sharp changes in the price environment in world markets, ”the association said.
RAPU President Andrei Guryev noted: in order to avoid peak demand, many farmers have already begun to prepare for the spring and purchase nitrogen fertilizers in advance. “A significant share of purchases has shifted from spring to autumn. Because of this, in a number of regions, the demand for ammonium nitrate, the main fertilizer for spring sowing, has grown or will sharply increase in the near future, "Guryev said.
“The largest fertilizer producers welcome the turn of the agro-industrial complex towards advance purchases and, for their part, are extending the regime of containment of prices for mineral fertilizers until the end of the year. It will be easier for farmers to make purchasing decisions, and for producers to take into account the growing needs of farmers in terms of production and bypass all the bottlenecks associated with an increase in seasonal demand, "he added.
The President of the Association also said that Russian farmers have already purchased more than 90% of the volume of mineral fertilizers they need this year. “The declared annual demand of the agro-industrial complex of the Russian Federation in fertilizers will be fully met, we do not see a shortage of mineral fertilizers in the regions,” Guryev emphasized.