Prime Minister Dmitry Medvedev instructed the government on Monday to work out measures by the third quarter of this year to curb rising fertilizer prices and protect domestic agricultural producers.
“The situation may be aggravated from the start of next year, when the price of fertilizers will be determined by the world agrarian market situation and seasonal factors. In these conditions, we need an effective mechanism of support for agricultural producers,” Medvedev said.
“And I would like this mechanism to be created and submitted to the government by the end of the third quarter,” Medvedev said, adding fertilizer prices had risen by 12 percent on average from June 2011.
Russia will have to lower import duties, after it officially joins the World Trade Organization later this year after almost two decades of negotiations, opening the door to cheaper imports and tightening competition on the domestic market.
Representatives of Russian agriculture have already asked the government for 400 billion rubles ($13 billion) to offset the effects of Russia’s accession to the world trade club.