Fertilizers in the Novosibirsk region rose in price by 15-30%

Members of the Legislative Assembly of the Novosibirsk region were concerned about the situation in the agriculture of the region.

“It was decided to support bakers and millers, so the price for grain in the market has stabilized,” said Gleb Popovtsev, Deputy Chairman of the Committee on Budgetary, Financial and Economic Policy and Property.” At the same time, fertilizers rose in cost by 15-30%. Where is the limit of this price growth? We artificially restrict sales of grain, legumes and oilseeds, up to the complete termination of their shipment outside the Novosibirsk region. What can this lead to? To the production decline of these crops, or to an increase in the cost, which will entail a wave of bankruptcies among regional agricultural enterprises. How does the Ministry of Agriculture of the Novosibirsk region assess these risks?”

According to the statement of the Minister of Agriculture of the Novosibirsk region Yevgeny Leshchenko, his department monitors actually completed transactions for the sale of grain.

“Since the beginning of December, prices in the Novosibirsk region have remained almost unchanged. Moreover, in some regions in the European part of the country, wheat has fallen in price by 1.5-2 thousand rubles ($20-27) per ton,” he noted. “We have new directions for the redistribution of grain flows. Today, Kazakhstan is taking the leading position in terms of shipments abroad, and we can export grain there without protective duties. We will continue developing this direction in the future as well. That’s disappointing, of course, that the profit from export deliveries is received not by us but a friendly state.”

Yevgeny Leshchenko admitted that 61.6 million rubles (approximately $826 thousand) were allocated from the federal budget to support millers and 45 million rubles (approx. $603 thousand) to support bakers. In March, these funds will go to enterprises, which sign agreements to prevent the growth of the cost of bread. Yevgeny Leshchenko also confirmed that prices for certain types of mineral fertilizers rose by up to 40%.

The Minister promised to hold a meeting with dealers of mineral fertilizers of the Novosibirsk region and together with them resolve the issue of supplies to agricultural enterprises.

“If necessary, we will involve the Federal Antimonopoly Service to find a way out of the situation,” he said.

Yevgeny Leshchenko agreed with Gleb Popovtsev that it would be reasonable to regulate not only the price of socially significant types of products but the price of the resources required for their production as well. However, due to China has cut their production of mineral fertilizers and the fall in the ruble exchange rate, it’s difficult to plan the price controlling measures for mineral fertilizers.