MIL OSI Translation. Region: Russian Federation –
Deputy Prime Minister Victoria Abramchenko considers it necessary to introduce floating export duties on mineral fertilizers to stabilize prices.
“For mineral fertilizers, they abandoned the idea of (price – note) agreements. But measures of economic regulation, customs and tariff regulation, for example, floating duties on mineral fertilizers, from my point of view, should be applied,” Abramchenko told reporters.
Earlier it was reported that the Ministry of Agriculture appealed to the government about the increase in fertilizer prices. The need for this arose due to the fact that “certain regions reported a continuing rise in prices for mineral fertilizers, in particular for the phosphorus group,” the ministry said in a press release.
In addition, in early June Abramchenko instructed the Ministry of Economic Development and the Ministry of Agriculture to submit proposals to the government on stabilizing prices for mineral fertilizers.
The Ministry of Agriculture is raising the issue of the rise in prices for mineral fertilizers since this spring. Speaking at a government meeting in March, the head of the department, Dmitry Patrushev, proposed fixing prices for mineral fertilizers for the next two to three months. He explained the need for this step by the rise in prices for certain types of fertilizers.
“According to the results of last year, Rosstat recorded an increase in producer prices for a number of items in the range from 11 to 41%. According to the regional governing bodies of the agro-industrial complex, the average price of certain types of mineral fertilizers for agrarians has increased by another 10-20% since the beginning of the year,” he said. minister.
Then the Ministry of Agriculture developed a draft government decree, which provided for the conclusion of agreements on prices for mineral fertilizers. But it was not accepted.
Meanwhile, agricultural producers continue to note a significant increase in prices for mineral fertilizers, which, in their opinion, may lead to a reduction in the area of winter sowing for the harvest of 2022.
As the governor of the Rostov region Vasily Golubev said at a meeting of the board of the Ministry of Agriculture last week, “today farmers are very worried about the unreasonable rise in prices for mineral fertilizers.” “Over the year, prices showed (growth – approx.) From 20% for nitrate and up to 70% for ammophos,” he said. – Plans to increase mineral nutrition and reach the level of 100 kg in active ingredient per hectare – now we have 75 kg – may be unfulfilled, because the villagers will not be able to do it due to a decrease in financial opportunities, “he warned.
Meanwhile, the Russian Fertilizer Producers Association (RAPU) last week circulated a press release, in which, with reference to the president of the association, PhosAgro CEO Andrey Guryev, called the current rise in prices for mineral fertilizers “a normal, fundamental recovery” after falling prices on average by 40% in 2019-2020 and urged agricultural producers to plan the purchases of chemical products in advance.
As one of the measures to increase the availability of fertilizers in the RAPU, they called the introduction in the near future at the St. Petersburg International Commodity Exchange (SPIMEX) of exchange lots of a small volume – from 5 tons of mineral fertilizers. “In the future, exchange indicators may form the basis for long-term contracting with formula pricing,” the RAPU noted.
A source: Interfax
EDITOR’S NOTE: This article is a translation. Apologies should the grammar and / or sentence structure not be perfect.