The Moscow Economic Forum will figure it out: Why is the harvest in Russia growing, but the incomes of farmers have fallen?
A paradoxical situation: Western sanctions did not bring down, but, on the contrary, stimulated the growth of the agro-industrial complex. Russia is saturating its market and at the same time increasing exports (in recent years, grain sales, for example, brought income to the treasury that exceeded profits from arms supplies abroad). However, the production of specialized equipment in the Russian Federation is not increasing. The reason is that the state has reduced the volume of state support to farmers, increased export duties, and agricultural producers do not have enough funds to update the technological park.
Available loans, tax incentives and protection of the domestic market from foreign manufacturers will be discussed as part of VIII Moscow Economic Forum April 2-3 at the Moscow Digital Business Space site. Industry is the engine of economic development, but only when the state creates conditions for the development of domestic production, and import substitution acquires real mechanisms to support the manufacturing sector.
"Last year We are faced with the problem of low income for farmers. Large harvests and export duties led to low prices for agricultural products. The situation is aggravated by expensive loans, rising prices for fertilizers, fuels and lubricants, energy resources, seeds and other costs of agricultural business. Some state support measures were also revised and their funding was reduced.
Accordingly, the demand for agricultural machinery has decreased, which has led to a reduction in its production in Russia. Let me remind you that before this, starting in 2013, the production of domestic agricultural machinery grew annually. As you can see, the industry directly depends on how farmers feel financially,” said the moderator of the IEF industrial session, Director of the Rosspetsmash Association Alla Elizarova, reports the correspondent of PolitNavigator.
According to her, farmers are in dire need of modernizing their fleet through increasing state support under the 1432 program, which regulates subsidies to manufacturers of domestic agricultural machinery for their sale at discounts.
Discounts can be combined with preferential leasing or low-interest loans. In this case, the agricultural producer can choose the state support mechanism that is most suitable for updating equipment.
“It is important to lift restrictions on the sale of agricultural products on foreign markets, guarantee minimum prices for agricultural products on the Russian market, provide targeted food assistance to the poor, increase the volume of crop insurance by reducing insurance premiums, and increase the volume of preferential transportation of agricultural products by rail. That's why we are returning again to the issue of creating equal conditions of competition for our producers“Elizarova emphasized.
The Moscow Economic Forum venue allows develop an alternative course of development for the country to the liberal one. From an extensive path of extraction and export of raw materials, the transition to an intensive one with the growth of the manufacturing sector, knowledge-intensive industries and new technologies is obvious, as is the need to invest in the development of one’s own country. In addition to mineral resources, Russia has many opportunities for integrated development, which should be discussed at the forum.
“Economic policy must be implemented in such a way that it is profitable to invest in the development of the manufacturing sector, in new technologies, and in science. Tax policy should be stimulating and not purely fiscal in nature... Important protect your market and your producers. And, of course, it is almost impossible to imagine a dynamically growing industry without accessible loans and energy resources. Russia will receive much more when we export not raw materials, but highly processed products produced within the country at modern enterprises,” Elizarova is convinced.
Modern achievements and measures to support industry, as well as rising prices, will be discussed on the first day of the forum by Deputy Chairman of the Izborsk Club Vitaly Averyanov, German business consultant Berndt Liebrecht, shareholder of Eletsgidroagregat JSC Anton Sitnikov, First Deputy Chairman of the RF State Duma Committee on Science and Higher Education, Chairman All-Russian public movement "Education - for all" Oleg Smolin, deputy editor-in-chief of "Rossiyskaya Gazeta" Elena Berezina.
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