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Russian Government Subsidises Fuel for Farmers

10 February 2012

RUSSIA - Russian agriculture minister Yelena Skrynnik this week announced an increase in the subsidised fuel granted to farmers in the March to June period to cultivate the land.

The move, which is part of the regulations introduced by Russian Prime Minister Vladimir Putin will allow farmers to buy fuel to use on the land at 30 per cent of the wholesale rate.

Traditionally, the amount of fuel required is calculated on the basis of the applications for each area.

The fuel demand is based on need, the area of farmland and the amount work using machinery that is planned as well as the ability of the oil companies to meet the demand for the subsidised fuel.

The agriculture ministry estimates that there will be a 10 per cent increase in the fuel requirements this year compared to last year.

This is partly because the Russian Government has increased the acreage to be cultivated by 1.828 million hectares - 102.4 per cent of the 2011 totals.

To date the Ministry of Energy has agreed to give $1 million worth or 312,000 tonnes of diesel free. This is about 167,400 tonnes more than was given for the March to June period in 2011.

Yelena Skrynnik has now told the regional governments that they must immediately provide the oil companies supplying the agribusiness a list of farmers and the required quotas of fuel.

"It should soon be possible to conclude these prolonged discussions between the farmers and the oil companies," the Minister said. "We will also be able to organise weekly monitoring of the contracts."

A special hot line is to be set up on the internet for farmers to see the progress of the contracts.

TheCropSite News Desk

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