MOSCOW, July 16 (Reuters) – Russian fertiliser producers have agreed to freeze costs at which they promote their crop vitamins to the Russian farmers for the 2021/22 advertising and marketing 12 months, which began on July 1, the Russian authorities mentioned in a press release on Friday.
Russia, one of many world’s largest wheat exporters, has been involved about home meals safety since late 2020. It launched a listing of grain export curbs and retail worth caps on sunflower oil that it hopes will assist to cut back excessive meals inflation.
Steady home costs for fertilisers will stimulate enter of crop vitamins by farmers and rule out decrease crop yields, Russian Deputy Prime Minister Victoria Abramchenko was quoted as saying within the assertion after a gathering with producers Phosagro PHOR.MM, Eurochem, Acron, Uralkali and Uralchem.
The value caps are voluntary, however the quantity of product wanted for consumption on the fastened worth will probably be decided by the federal government inside per week, the assertion added.
Russian fertiliser producers took related steps in 2015, 2016 and 2018 once they held their home costs steady to assist long-term demand.
Phosagro, one of many world’s largest producers of phosphate-based fertilisers, will hold its home costs on the July degree till the top of the primary a part of winter grain sowing – by the top of October, it mentioned on Friday.
“Making an allowance for the change within the macroeconomic state of affairs attributable to the results of the continued pandemic and droughts, which might put farmers … in danger, we’ve got determined to assist our shoppers,” Andrey Guryev, Phosagro chief govt, mentioned in a press release.
Uralchem and Uralkali mentioned in June they’d freeze their home potash costs.
The federal government can also be contemplating long-term mechanisms to safe availability of crop vitamins for farmers, it mentioned.
Russia’s agriculture ministry expects its farmers to spice up consumption of mineral fertilisers to eight.2 million tonnes by 2025 from 4.5 million tonnes in 2021.
(Reporting by Polina Devitt; enhancing by Steve Orlofsky)
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