Page 138 - RusRPTApr21

9.1.5 Retail sector news
9.1.6 Agriculture sector news
The Russian Government is considering the prolongation of existing self- regulation agreements on price caps for bottled sunflower oil until 1 October 2021, and for at least for two months for sugar (until the end of May 2021). It is aimed at keeping prices at the same level, while a cost subsidy mechanism is to be introduced for sugar (RUB 5/kg), in a total amount of RUB 3bn. Another proposal by the Government, discussed with the Eurasian Economic Commission, is to lift white sugar import tariffs from countries of the Eurasian Economic Union from 15 May - 31 August 2021, but for a volume of no more than 350,000t. For bottled sunflower oil, more details on the final subsidies are yet to emerge.
Russia’s Agriculture Minister freezes wholesale poultry prices for two months. After discussions with Minister of Agriculture Dmitry Patrushev, some of the largest industrial poultry producers have agreed to freeze wholesale prices for poultry meat and eggs for the next two months, according to Sergey Lakhtukhov, the Head of the Poultry Union, VTBC reports in a note:
He also noted that the industry would require additional support from the government, as production costs increased 30% last year vs. the 20% growth in the prices, creating risks to the financial stability of producers. The Ministry of Agriculture has introduced a number of possible initiatives to support the industry.
138 RUSSIA Country Report April 2021 www.intellinews.com