Russian authorities considers the indexation of mineral fertilizer prices

The Ministry of Agriculture of Russia may consider the issue of readjustment prices for mineral fertilizers if prices for agricultural products increase, said First Deputy Minister Oksana Lut.

“We will return to the issue of price indexation for mineral fertilizers when the price of our agricultural products grows,” noted Oksana Lut.

According to her statement, one of the reasons for making such a decision is the mineral fertilizer price affordability index, which is calculated based on a methodology of the Ministry of Economic Development and the Ministry of Industry and Trade of Russia.

“At current prices for agricultural products and expected fertilizer prices, fertilizers have become unavailable, and this affordability index has fallen below one. Due to this, the Prime Minister decided not to adjust the fertilizer prices. Therefore, prices should remain at the summer level,” explained Oksana Lut. “If the index is one, the Ministry of Agriculture will allow prices to be increased, if it’s less than one, then we will remain at the current level. Russian farmers should be sure that they will be able to purchase the necessary amount of mineral fertilizers.”

Source: TASS