The Ministry of Agriculture has prepared a draft order that increases the maximum amount of compensation for the construction and modernization of agricultural facilities, Kommersant found in the database of draft acts. The authorities expect that the measure will lead to price stabilization, but market participants and experts emphasize that indexation turned out to be lower than real inflation and will no longer allow attracting enough investment to the industry.
It is proposed to increase the maximum amount of subsidies for potato storage and processing capacities from 15 to 19 rubles. per ton, for storage of fruits and vegetables - from 60 thousand to 75 thousand rubles. Therefore, the average indexation size is 25%. The new rates apply to projects starting in 2022.
The ministry noted that the increase is planned due to rising prices for materials and equipment, which lead to an increase in the cost of projects in the agro-industrial complex, in order to maintain the investment attractiveness of industries and increase production and storage capacities.
The fact that the Ministry of Agriculture plans to revise the amount of compensation became known at the beginning of the year (see "Kommersant" dated January 25). The increase in storage capacity should stabilize the prices of vegetables and fruits. As Rosstat reported, in January 2022, the average prices for cabbage, cucumbers, tomatoes, garlic and carrots increased by 7-15%, depending on the category. Vegetables remain among the most inflation-prone foods.
Mikhail Glushkov, director of the National Fruit and Vegetable Union, adds that setting a lower maximum compensation cost may reduce the effectiveness of indexation. According to him, in this case, the amount of compensation is practically reduced - the investor is actually reimbursed not 20%, but 10%.
Tatyana Gubina, head of the Potato Union's staff, says that the construction of a modern storage facility with climate control and processing lines with a capacity of 5 tons costs about 350 million rubles. The Potato Union believes that a more effective incentive for the construction of new storage facilities would be an increase in the share of subsidies in project financing - from 20% to 70% of the costs.
Aleksey Gruzdev, head of Streda Consulting, adds that the order of the Ministry of Agriculture does not take into account facilities whose construction began and continued in 2021, so that the rise in prices for building materials that has occurred is entirely the responsibility of investors. Compensation limits are limited, not all projects will be able to receive support, the expert notes.
Does not add optimism to investors and the position of the Ministry of Finance - the need in the future to replace the compensation of capital costs with other support measures, continues Alexey Gruzdev. The Ministry of Agriculture claims that the issue of canceling this subsidy is not being considered.