Agriculture Minister Alexey Gordeev (right) will have his chahnce to tell the government the right price for food.
Photo: Dmitry Azarov
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Ag. Ministry Plans Include Price Controls
Agriculture Minister Alexey Gordeev will give an account of the activities of his ministry last year and its plans for this year at today's session of the government. At that meeting, plans to impose state price controls on the food market will be discussed for the first time. Those pans may be brought to fruition before the end of the month or next month. There is practically no opposition to the ministry's plans. The Ministry of Economic Development and Trade is discussing the maximum markups on bread, milk and meat with the Agriculture Ministry.
In the main, the Agriculture Ministry is proposing a maximum markup of 10-15 percent on retail sales of “socially significant agricultural products.” The rules would be amended in the law on trade in the spring. Sources in the presidential administration say that an agreement on the size of markups will have to be reached between the Ministries of Agriculture and Economic Development and Trade before the plan can be implemented, however. The Economics Ministry favors markups up to 20 percent.
Gordeev is also proposing the formation of an interventional grain reserve of 2.5-5 million tons this year to fight price growth. The grain reserve has never exceeded 2 million tons so far. The ministry may announce the price reserve grain will be purchased at this month. It is also proposing that the 40-percent export duty on grain, with a minimum of €150 per ton be extended through the beginning of July. The final consideration of the grain reserve will be made on March 20. The only result of today's government session is expected to be the approval of the Agriculture Ministry's agriculture development plans. It wants to increase production by 3.8 percent this year, increasing planting by 2 percent and animal husbandry by 4.8 percent. It also wants to increase the consumption of domestic meat to 61.1 percent and domestic milk to 78.3 percent.
Gordeev has been designated deputy prime minister in the future government of Vladimir Putin, so his presentation today may consist of the government's future agriculture policy.
www.kommersant.com
All the Article in Russian as of Mar. 06, 2008
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