Russian govt tightening control over exports of agro product to ensure domestic market supplied - Deputy PM Patrushev
MOSCOW. Nov 29 (Interfax) - The Russian government is tightening control over exports of agricultural products to ensure that the domestic market is supplied, Deputy Prime Minister Dmitry Patrushev said following a government meeting, during which the situation on the food market was discussed.
"We are also tightening control over exports of agricultural products to prioritize the domestic market, and the measures should stabilize the price situation," Patrushev said, emphasizing that the agricultural sector is boosting production and expanding the range of measures to increase the availability of products.
The food market is fully stocked with products, Patrushev said. "Despite very challenging weather conditions this year, Russian farmers have harvested a decent crop. The livestock and fisheries sectors remain stable, and the food and processing industries are working dynamically. However, given the increased demand for certain food products and the resulting trend of rising prices, the government is taking additional measures to enhance the economic accessibility of goods," he said.
First, regions are signing agreements with producers and retailers to stabilize prices. This includes products like butter, sugar, bread and vegetables from the so-called borsch set. "Currently, 36 regions are involved. We are seeing positive results. Therefore, it has been agreed that the Federal Antimonopoly Service will recommend that other regions adopt this tool and will continue monitoring prices overall," Patrushev said.
"Second, we are encouraging retailers to establish long-term contractual relationships with vegetable and potato producers. This will allow both producers and [retail] chains to understand what prices their products will be procured and sold at. Also, it guarantees farmers a market and eliminates intermediaries from the supply chain," he said.
Third, to fully saturate the market, Russia continues to import certain types of products from friendly nations. "However, we are of course focusing on increasing our own production," he said.
State support for the agricultural sector is increasing, Patrushev said. More than 0.5 trillion rubles has been allocated for next year. The issue of providing extra funds to the Agriculture Ministry in 2025 for financing investment projects in dairy and meat farming, vegetable growing and fruit and berry production is being considered. Extra funding will also be allocated for short-term concessional loans to ensure a smooth planting season. Around 40 billion rubles will be provided in total. The funds will be swiftly distributed to farmers.
"In this way, we will continue steadily increasing production to meet growing demand with Russian products in particular," Patrushev said.