In the next agricultural season, starting from July 1, 2024, many farms may go bankrupt due to increased production costs. About this agency Interfax said Arkady Zlochevsky, President of the Russian Grain Union.
The expert noted that this fate threatens farms in many regions where the economic situation is already deplorable, despite some decrease in prices for fuel and plant protection products.
As Zlochevsky noted at a press conference in Moscow, the biggest blow to the profitability of agricultural producers will come from the doubling of seed prices last year.
“These savings will be consumed, first of all, by seed prices, which have doubled during the year,” Zlochevsky said.
Farmers are especially concerned about the introduction of quotas on seed imports.
“We wrote an appeal to the president about what is happening in our seed industry in connection with the new rules. First of all, we are talking about the distribution of quotas for the import of imported seeds,” said Zlochevsky.
According to him, 70 percent of the quotas went to non-core start-ups that would act as intermediaries for farmers to purchase imported seeds.
Zlochevsky also noted that shipments of imported seeds before the implementation of quotas accumulated at the border, but through no fault of the buyers they did not have time to pass through customs. These seeds will now have to either be returned or destroyed. The head of the Union also supported the policy of increasing the share of domestic seeds, but primarily called for the creation of conditions for the development of breeding.
Formerly political scientist named The agricultural sector is one of the most successful industries in Russia.
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