Vegetable producers proposed to introduce export duties on fertilizers

Moscow. November 13. The Union of vegetable producers proposes to introduce export duties on fertilizers.

Lately, the prices of mineral fertilizer has increased significantly, limiting their import will allow agricultural producers to increase the procurement of chemicals, stated the President of the Union Sergey Korolev at the meeting of the state Duma Committee on agrarian issues/

“We have imposed export duty on wheat, I believe that we have to put her on fertilizers”, he said.

This issue was raised due to the fact that in the Federal budget for 2016 reduced the amount of state support in this area-per-hectare subsidies (decoupled support).

According to the Union, the introduction of export duties will allow to additionally Finance this direction.

Korolev has stated, restrictions on export of mineral fertilizers will allow to reduce the cost of crop production and, as a result, the price of the finished product. “The fee will be the instrument compensate for the increase of the production cost of farmers,” he said.

The issue of imposing export duties on fertilizers was discussed at the beginning of this year, when Russian farmers and producers agreed on the amount of discounts on fertilizers during the spring planting season. As a result, the agreement about the size of discounts has been accomplished, from the idea of imposing export duty, the government refused.

The question of introducing export duties on fertilizers was raised again in late summer amid negotiations about the price of fertilizers for the autumn sowing and budget negotiations for 2016.

In September, the fertilizer producers and farmers agreed that the strong increase of prices for fertilizers on the domestic market until the end of the year will not be. The Russian authorities expect to continue to negotiate with the manufacturers of fertilizer prices, it was not necessary to impose export duties, said in early October, Deputy Prime Minister Arkady Dvorkovich.

The head of FAS Igor Artemyev in October, also said that while he sees no need to impose export tax on fertilizers.

Currently, export of mineral fertilizers duty free. Export duties on mineral fertilizers of the Russian Federation was introduced in March 2008 to stabilize prices on the domestic market. So, for nitrogen and complex fertilizers was set at 8.5% duty rate on potash is 5%. These duties were abolished in 2009.