Fertilizer prices are still the key issue

According to the statement of the Russian Minister of Agriculture Dmitry Patrushev, the level of the fertilizer prices fixation is a key issue for the agro-industrial complex.

“We are concerned about the rise in fertilizer prices, and we constantly interact with regions, the Ministry of Industry and Trade of Russia and the Federal Antimonopoly Service. At the moment, producers have announced their readiness to freeze prices. But it’s important at what level they will fix the prices — this is the key issue,” said Dmitry Patrushev.

The Minister also added that “the developing of systemic measures for the availability of fertilizers for agricultural producers continues”.

“By the end of 2021, we plan to apply 55 kg of mineral fertilizers per hectare. However, the target is 80 kg, which is a scientifically grounded indicator. This must be done soon,” said Dmitry Patrushev.

In mid-July, at the meeting with Deputy Prime Minister Victoria Abramchenko, an agreement to freeze prices for mineral fertilizers for the domestic market in the current agricultural year was reached. Producers of mineral fertilizers, including PhosAgro, Acron, EuroChem, then announced their readiness to fix prices for domestic farmers at current levels and also provide a 5% discount until the completion of autumn field works (until October 31, 2021).

Besides, it’s planned to introduce an index of the availability of mineral fertilizers in the domestic market by the end of the year.

“The state of the world market of mineral fertilizers and the food market will be assessed and then an index of the availability of fertilizers for the domestic market will be derived through a complex formula. This formula should be flexible and fix prices for the domestic market at the adequate for agricultural producers levels,” Victoria Abramchenko explained earlier.

Source: Interfax