Volga Baikal AGRO News Update on the Fertilizer Prices !!!
The government is taking measures to stabilize the market situation.
It is important to prevent disruptions in the work of the agricultural sector due to fertilizer prices.
Fertilizer producers promise to fully meet the needs of farmers.
The authorities should keep in mind the difference in the price of mineral fertilizers in the domestic and foreign markets in order to prevent disruptions in the work of agriculture. President Vladimir Putin said this during a meeting with the government. “On the Russian domestic market, the price of mineral fertilizers is three or even four times lower than on the European market. This will cause a great desire among manufacturers to enter premium markets,” – the head of state noted (quoted from the video recording of the meeting).
“Due to the rise in prices for energy resources and for gas, which is a raw material for fertilizers, large European producers are cutting production volumes by almost half – by more than forty percent. And such a large exporter as China, according to international data, also makes appropriate decisions to restrict exports. All these are factors that make us think seriously about what will happen in the near future with the cultivated areas in the world in general and in Europe in particular, and with the food products,” – Putin stressed.
To maintain stability in the mineral fertilizer market, the government is taking a separate set of measures.expects that as a result of their implementation, farmers will acquire the necessary amount of fertilizers at affordable prices, said the head of the agricultural department Dmitry Patrushev during the meeting.
Earlier it became known that the government introduced restrictions on the export of nitrogen and complex fertilizers containing nitrogen for six months. The volume of permitted export of nitrogen fertilizers will amount to 5.9 million tons, complex – no more than 5.35 million tons. This measure should allow Russia to avoid negative consequences associated with the global energy crisis and rising prices for natural gas. In addition, a methodology for determining the price availability of fertilizers has been created and is already being applied.
According to the President, the prepared measures are “sound and balanced“, while it is important not to reduce the production of those fertilizers that will be needed to implement plans for the development of agriculture.
The Russian Association of Fertilizer Producers (RAPU) previously reported that the annual demand for mineral fertilizers of 4.52 million tons, declared by the Ministry of Agriculture in February, has already been met by more than 98%. There is no shortage of fertilizers and is not expected. “Next year, according to the forecast of the Ministry of Agriculture of Russia, the need of the agro-industrial complex for mineral fertilizers in 2022 will amount to 4.7 million tons. Like the need for this year, it will be fully provided by Russian producers,” – said RAPU President Andrei Guryev.