On food prices and government regulation
“I think the government made the right decisions, but if [regulation] is used for a long time, it can have a different effect,” said Sergey Dankvert, head of the Rosselkhoznadzor, answering the question whether the regulation of sugar and sunflower oil prices was effective or, conversely, an excessive measure. . “In order to reduce prices, you need to increase production and decide on a support system.” “Either we support those segments of the population that require support, or we support manufacturers. Otherwise, producers may lose interest in producing as much as they can.”
“Back in 2002, when we were choosing when to regulate the market and proposed creating an intervention fund for grain, we said that it was necessary to add powdered milk , butter, and cheese to this. German Oskarovich (Gref, at that time the Minister of Economic Development - RBC) said: "There is no need to regulate, this is the market." And we said that there are no such examples when the state does not influence the market.”
The state influences the market everywhere, the head of the Rosselkhoznadzor emphasizes: either by technical methods, when they simply do not allow them to enter their market, or they balance it with support. “If the state regulates the market, then we are following the path of Canada, where partial regulation goes to grains, dairy products, eggs and poultry products. For socially important products, it is quite possible to use American methods when they keep [in reserve funds], then throw away certain types of products [when prices rise].”
The task of increasing domestic production has always been, but after Russia , in response to the sanctions of Western countries, introduced a food embargo [a ban on the import of certain types of products from countries that imposed sanctions into Russia] and began to develop import substitution, agriculture received much more support. “The West itself made a big push for our agriculture, for which we must say a big thank you for the imposed sanctions. All collective farmers thank the administration of the US and the EU. They were able to give a big impetus to the development of agriculture in Russia.”