November 26, 2012

 

Russian to see better growth for grain production

 

 

Russia's agriculture growth may progress past the 2.4%-2.5% target being outlined in the government programme for 2013-2020.

 

In particular, grain production could more than triple to 300 million tonnes.

 

The agriculture sector of the Moscow Economic Forum, which met in the Russian Chamber of Commerce and Industry, discussed the future of agriculture. The main report was delivered by Konstantin Babkin, President of the Roi political economy club.

 

He said that rural unemployment was twice as high as in cities and the government's agricultural policy was proving ineffective. Babkin said that the 2013-2020 programme only gives a slight growth of 2.4%-2.5%, as a result of which Russia could fall behind the world's agricultural leaders.

 

Russia's WTO accession is no positive achievement either, he argued. It has opened the Russian food market to cheap imports, while prohibitive duties hinder Russian exports. Babkin also criticised the government's policy of restraining food prices, which makes farmers' work increasingly unprofitable.

 

Babkin also proposes banning agricultural imports and lifting the embargo on exports. The Russian agricultural sector could grow rapidly and ultimately feed one billion people, Babkin said. Grain production could be increased three- or fourfold, to 300 million tonnes, by raising the yield and using the 40 million hectares of farmland currently lying idle.

 

David Epshtein from the North-Western Research Institute of Agricultural Engineering said that productivity in agriculture is rising by 4%-5%, while resource intensity is falling by 2%-7% a year and energy intensity is decreasing, too. But for its innovative development to become irreversible, the funding of relevant research must be at least doubled. Epshtein proposed approving a food tax of 1.5%-2%, which would not be a huge burden on people but would ensure sustainable funding for agricultural research.

 

Alexander Rodin, Chairman of the Association of Family Farms and Agricultural Cooperatives of the Rostov Region, said the problem would not be settled without land reforms. He also recalled that President Putin had promised to legaliz\se land ownership for nine million farmers.

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