Russian government to fix fertilizer prices soon

MOSCOW, Jul 16 (PRIME) – The Russian government will within a week set fixed prices for  fertilizers for the farmers in the current agricultural year, which started on July 1 and will end on June 30, 2022, Deputy Prime Minister Viktoria Abramchenko’s press service said in a statement on Friday.

Abramchenko chaired a meeting on stabilization of fertilizer prices with the representatives of the Agriculture Ministry, the Industry and Trade Ministry, the Economic Development Ministry, the Finance Ministry, the Federal Antimonopoly Service, and fertilizer producers PhosAgro, EuroChem, Acron, UralChem, and Uralkali.

During the meeting, the parties discussed short-term and long-term measures to stabilize  conditions of the seasonal field works. “As a short-term measure, the business is ready to freeze fertilizer prices in the current agricultural year. … In order to improve affordability of fertilizers for the farms, producers of mineral fertilizers suggested consideration of an additional 5% discount,” Abramchenko said, as quoted by the press service.

The ministries, the antimonopoly watchdog, and the business should set the parameters of the voluntary price fixing for a certain amount of fertilizer consumption during the current season in a week.

PhosAgro said in a statement that it decided to fix its fertilizer prices for the Russian farmers at the level of July until October 31, 2021.

“As we understand that the changes in the macroeconomic situation caused by the consequences of the ongoing pandemic and draught may put the farmers at risk … we have decided to support our consumers and create additional conditions for higher sales the efficient mineral fertilizers, and stimulation of field works and improvement of inter-sectorial connections,” CEO Andrei Guryev said as quoted by the company.

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