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MIL OSI Translation. Region: Russian Federation –

The Ministry of Agriculture, the Ministry of Industry and Trade, the country’s largest retail chains and food producers, on behalf of the Chairman of the Government Mikhail Mishustin, signed agreements to reduce and maintain prices for granulated sugar and sunflower oil – the most important essential food products.

Agreements signed to stabilize prices for sugar and sunflower oil

Ensuring the stabilization of prices for sugar and butter, their guaranteed availability for the population at affordable prices is a large-scale work of the authorities and business entities to fulfill social obligations to the citizens of Russia. “In the work on solving the task of the country’s leadership, we are working closely with the Ministry of Agriculture. At the same time, our direct responsibility is large federal and regional networks. With them, we have reached an understanding on marginal retail prices. This is, respectively, 46 rubles per kilogram of sugar and 110 rubles per liter of sunflower oil, “- said the Minister of Industry and Trade Denis Manturov.


Mikhail Mishustin signed a number of resolutions to stabilize the situation in the food market

The key price containment mechanism will be multilateral mutually binding agreements on sugar and sunflower oil separately, in effect from December 20, 2020 to April 1, 2021. They have already been signed by federal and regional trade networks, suppliers, industry associations of manufacturers and trade.

“The goodwill of all market participants who agreed to take on mutual obligations, primarily in terms of price targets, allowed the signing of these agreements quickly. Today, not all market participants are present here, but they will definitely join the agreements in the near future, ”the head of the Ministry of Industry and Trade said.

He thanked the business for understanding the situation and shown social responsibility, noting that this allowed resolving all differences in just a few days and signing both agreements.

According to the Minister of Agriculture Dmitry Patrushev, in accordance with the provisions of the agreements, the price should be adjusted within five days from the date of signing. At the same time, its decline is already taking place today.

“We sign agreements, including with key producers, which account for over 90% of the sugar market and over 85% of the sunflower oil market. In addition, the parties are trading networks, as well as industry unions and associations. At the same time, the agreements assume the possibility of further expansion of the participants. Of course, this will increase the availability of products for our citizens, ”the head of the Ministry of Agriculture emphasized.

Taking into account the logistic factor, the enormous size of Russia and its diversity for hard-to-reach regions, increasing coefficients are provided for retail prices in retail outlets.

“First of all, I mean certain territories of Siberia, the Far East (beyond the Urals) and the Far North (plus the Kaliningrad region). The right to make decisions in this part is given to the heads of the authorities of the constituent entities of the Federation, ”concluded Denis Manturov.

Economic Development Minister Maxim Reshetnikov noted that it is important not only to implement all these sets of measures, but to decide on a further strategy. “At the moment, in many areas, the volume of export of agricultural products is comparable to the volume of domestic consumption. Accordingly, it is necessary for both retail chains and agricultural producers to secure predictable conditions for how the state will react to such a situation. We need a permanently operating mechanism, predictable and understandable for everyone, ”the minister emphasized.

The Ministry of Industry and Trade, together with colleagues from other departments, will continue to monitor the situation. On behalf of the First Deputy Prime Minister Andrey Belousov, price monitoring will be carried out on a daily basis.

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

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