Post sponsored by

MIL OSI Translation. Region: Russian Federation –

We are talking about a possible extension of agreements and subsidies to manufacturers.

First Deputy Prime Minister Andrei Belousov chaired a meeting of the interdepartmental working group on monitoring and prompt response to changes in consumer prices for socially significant goods.

The measures previously taken by the Government to conclude agreements between federal executive bodies and economic entities to reduce and maintain prices for white sugar and sunflower oil have proven their effectiveness. In order to further maintain retail prices at an acceptable level for citizens, it was decided to instruct the FAS, the Ministry of Agriculture and the Ministry of Industry and Trade to conduct prompt consultations with businesses in order to extend agreements on reducing and maintaining prices: for white sugar – for two months, for sunflower oil – until October 2021 … In the current agreements, the selling price of enterprises for white sugar is 36 rubles per 1 kg, retail price is 46 rubles per 1 kg, sunflower oil is 95 and 110 rubles per 1 liter, respectively.

At the same time, a number of supportive measures are proposed.

Producers of white sugar, subject to the conditions for shipment only at retail, can be provided with a subsidy from the federal budget for a period of up to six months at the rate of 5 rubles per 1 kg, provided that the price of the refinery is not increased. It is planned to launch such a measure from April 1. The total amount of subsidies may amount to about 3 billion rubles. The Ministry of Agriculture, the Ministry of Economic Development and the Ministry of Finance have been instructed to submit to the Government a draft of the relevant act.

In order to maintain stable volumes of sunflower oil production, it is planned to launch a mechanism for subsidizing processing enterprises for a period of six months, which provides for reimbursement of costs for the production and sale of bottled oil.

Also, at the EEC level, the issue of lifting duties on the import of white sugar for a period from May 15 to August 31 of this year in the amount of no more than 350 thousand tons is being worked out. The draft of the relevant act must be submitted by the Ministry of Economic Development to the Government no later than April 1.

According to the Ministry of Agriculture, in order to increase the volume of Russian sugar production, the sown area for sugar beet will be expanded this year and will amount to more than 1 million hectares. Thus, its production will amount to at least 40 million tons, which will make it possible to obtain about 6 million tons of sugar. “This volume will be enough to guarantee the needs of the domestic market and the formation of carry-over stocks,” the ministry said.

According to the Ministry of Industry and Trade, large and medium-sized retail chains comply with the terms of the existing agreements. In the current conditions of the world conjuncture, their extension will allow avoiding sharp price surges and gradually returning to market regulation mechanisms. “Subsidies to producers will become an additional factor that stimulates production, which means that it will increase supply“ on the shelf ”and will put pressure on prices in all segments,” the Ministry of Industry and Trade noted.

The Ministry of Economic Development, the Ministry of Agriculture, and the Ministry of Industry and Trade were instructed to prepare and submit to the Government a monthly schedule (for six months) of sugar supplies to retail chains by March 25, indicating the volume of supply and cost per 1 kg.

First Deputy Prime Minister Andrei Belousov drew particular attention to the need to work more actively with agricultural producers and processors in order to prevent seasonal price fluctuations.

The meeting of the working group, created by order of the Prime Minister Mikhail Mishustin, was attended by representatives of the Ministry of Economic Development, the Ministry of Finance, the Ministry of Industry and Trade, the Ministry of Agriculture, the Federal Antimonopoly Service, the Federal Tax Service and the Federal State Statistics Service.

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

MIL OSI Russia News