16 Aug 2022 13:15

Russian ministries to develop new mechanisms to support agriculture in the Far East

MOSCOW. Aug 16 (Interfax) - Russia's Agriculture Ministry and Far East Development Ministry plan to work out additional mechanisms to support agriculture in the country's Far East.

"The ministries are now working on the main areas and amounts of support. The final proposals will be presented to the government soon," the Agriculture Ministry said on its Telegram channel.

Developing the agribusiness sector in the Far East is of particular strategic importance, as it is difficult and costly to supply food to the region, the ministry said. It is far cheaper and more efficient to grow food locally. This applies foremost to vegetables, as the region's self-sufficiency in this area is low, the ministry said.

However, the Far East now offers investors in the agribusiness sector far more opportunities. One of the fastest growing segments is greenhouse vegetable farming, which increased production by 15.9% to a record 32,000 tonnes in 2021. The harvest is expected to grow to 35,000 tonnes this year.

The highest rates of self-sufficiency for vegetables, melons and gourds were 62.4% in Sakhalin Region, 58% in Buryatia and 52.2% in Primorye.

The Far East Federal District now has 21 greenhouse complexes and another nine are under construction. Their completion will make it possible to expand growing capacity by almost 16,000 tonnes per year.

A new measure of state support that went into effect in the district this year is helping to make such investment projects happen. It provides for compensation from the federal budget for 20% of the actual project cost.

In addition, food products are shipped to the Far East on preferential terms, with the government subsidizing 100% of the railway freight rate. This also applies to vegetables, such as potatoes, onions, beets, carrots, tomatoes and cucumbers, which can be shipped from stations in the Siberia and Ural federal districts to regions in the Far East until the end of the year.