Three largest Russian producers of mineral fertilizers have announced additional measures to support farmers. Acron, Eurochem and PhosAgro will provide discounts to farmers in addition to previously fixed prices.
Discounts and fixing will be valid until October 31, 2021, that is, until the end of the autumn sowing season. According to experts of the agro-industrial complex, these measures will increase the affordability of fertilizers for Russian farmers.
Support found farmers
The discounts were in response to proposals from a parliamentary and government working group set up to control food prices and curb price increases for seasonal products. It was headed by the first deputy chairman of the State Duma, Alexei Gordeev. According to the first vice-speaker of the Federation Council, Secretary of the General Council of United Russia, Andrei Turchak, first of all, we are talking about vegetables included in the so-called "borscht set" - cabbage, onions, potatoes, carrots and beets, as well as additionally cucumbers and tomatoes ...
Industry experts note that the initiative of fertilizer producers will allow peasant farms not only to save money, but also to strengthen their financial stability against the expansion of large holdings collecting small plots in huge land banks. Funds for the purchase from giant plant breeders are even in conditions of export duties on grain. So, if we analyze the reporting of the leading agricultural holdings for 1 quarter. 2021 in the agricultural segment, then revenue increased by more than a third, and profitability - 1,5 times and exceeds 50%. In the first half of the year, the segment's revenue grew by almost 1,5 times. Probably, comparable results can be expected in terms of profitability growth.
At the end of July, in order to relieve tension associated with price fluctuations, the Government of the Russian Federation developed and approved methodological recommendations for monitoring and forecasting prices for mineral fertilizers. On behalf of the First Deputy Prime Minister of the Russian Federation Andrei Belousov, a new method for Russia was created for determining the price availability of fertilizers for Russian farmers. It is assumed that in the case of forecasting for a period of up to eight weeks a decrease in the availability of mineral fertilizers for domestic farmers, the mechanisms responses to improve the availability of mineral fertilizers.
New over existing
It is assumed that the new mechanisms will operate along with the principles of economic analysis of the pricing practices of the FAS Russia. In addition, manufacturers will continue to implement their own set of measures to contain prices for Russian consumers in the face of sharp changes in the macroeconomic situation. Thanks to them, Russian agricultural producers use the opportunity to purchase fertilizers much cheaper than foreign farmers.
In addition to this, another support for plant breeders, the main consumers of mineral fertilizers, is expected from the government. During the operation of the grain damper mechanism, the budget received more than 15 billion rubles. This money will be returned to plant breeders, Victoria Abramchenko told Vedomosti. According to her, it is very important that "this money is not taken and distributed for some other purposes within the budget, but given to those who have grown grain."