AKKOR (Association of Peasant Farms and Agricultural Cooperatives of Russia) once again announced the need to abolish the grain export duty. The organization considers this measure one of the main reasons for the decline in agricultural profitability.
“If we analyze the reasons for the decline in profitability, one of the main ones is the grain export duty. Currently, this is the most popular and pressing issue for agricultural producers: with such a sharp disparity in prices and a decrease in profitability, it is necessary to reset the export duty“, said the President of AKKOR Vladimir Plotnikov at the 35th Congress of the Association.
According to him, over the past two years, farmers have produced almost 300 million tons of grain, which is a historical record.
Member of the CASE PARTY, farmer Babken Ispiryan I wonder why Mr. Plotnikov, being the president of an industry association and at the same time a deputy of the State Duma, voted for a budget that includes revenues from export duties.
“I think this is quite strange. You can defend your position against the grain duty on the podium in parliament, and not among people who are already against it, but do not have political influence. In addition, he did not ask this direct question to the Minister of Agriculture, who was present at the congress, but limited himself to presenting him with a gold medal for constructive cooperation. This whole situation, in my opinion, is quite indicative in terms of the abolition of the grain export duty, which hangs like a weight on the feet of all peasants.”said the expert.
Babken Ispiryan recalled that this money actually subsidizes the entire agricultural sector and the comprehensive development of rural areas. But the market is not functioning correctly, and farms are deprived of the opportunity to invest in development. The result is a vicious economic circle from which we need to get out, but there is no solution yet on how to do this in practice.
Member of the General Council of the DELO PARTY, presenter of the program “Rural Hour” Igor Abakumov I am sure that despite the desire of the Ministry of Agriculture to administer gigantic sums, it is this department that must step on the throat of its ambitions in order to save Russia’s grain exports and publicly call for the abandonment of export duties.
“Due to this mechanism, 600 billion rubles have been received since 2021, which have been “taken away” from farmers. All this was done under the guise that some of our industries are more profitable, others less profitable. This money has become the basis for claims of unprecedented government support, but in fact, agriculture finances itself. We have accumulated huge reserves of grain. This will lead to the fact that, due to unprofitability and overstocking, crop rotations will begin to change in favor of more marginal crops. As a result, Russia may lose its title as the world’s leading wheat exporter.”“, says the expert and adds that it will be possible to return this position in five, seven, or ten years.
Our country is now investing enormous amounts of money in the infrastructure for international grain trade, including with China, continues Igor Abakumov, but it may not be in demand. In addition, machine builders who will have no one to sell their equipment, producers of fertilizer seeds, and so on will suffer.
“A lot of things will simply become unnecessary. This is a huge industry, based on the well-being of the peasant. He has money – he buys equipment, a personal car, books, clothes and much more. The entire rural infrastructure is being built around it. If he is not there, only crows and rickety huts remain in the village. The cost of grain on the world market is twice as expensive as on the domestic market. The peasants know about this and, in accordance with their psychology, do not want anyone to profit from them.”,” the expert emphasizes.
He especially noted that momentary benefit for the state can bring strategic defeat: people will switch either to pasture cattle breeding or to other crops, for example, flax. Because everything else is already subject to duties, including rapeseed. But then the question arises: what kind of food will our country sell on the world market?
“People are starting to draw conclusions and the state will not be able to influence their decisions. This could lead to an uncontrollable situation in agriculture, and this is a strategic sector for us,” summed up Igor Abakumov.
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Let us recall that according to the All-Russian Agricultural Micro-Census conducted in 2021, the number of farms decreased to 102.4 thousand from 136.7 thousand in 2016, individual entrepreneurs – to 20.8 thousand from 38 thousand. The area of agricultural land per farm increased to 456.3 hectares from 226.5 hectares. Individual entrepreneurs also expanded their farmland – up to 306.6 hectares versus 119.1 hectares (per farm).
Message Experts from the PARTY OF CASES on why the grain duty should be abolished immediately appeared first on Public news service.
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