Farmers noted a decrease in fuel prices

Deputy Chairman of the State Duma Agrarian Committee Nikolai Goncharov said that fuel has appeared on the market. “Now no one is in a hurry to purchase it in any large volumes; agricultural producers purchase it as needed,” he clarified. As for the price , there is a downward trend: now it is at the level of 65-70 rubles/l (76-80 thousand rubles/t). “The price is still astronomical,” Goncharov emphasizes.

The price acceptable for farmers, in his opinion, should be even lower than in July - then it was at the level of 55 rubles/l (65 thousand rubles/t). “At such a cost of fuel, the profitability of agricultural producers in most regions is negative,” the deputy estimates. He believes that the optimal price for fuel would be the level of May, when diesel cost about 47 rubles per liter (55 thousand rubles per ton).

The price of fuel has not yet returned to the level of mid-July - early August, but  the Ministry of Agriculture  expects that, taking into account the set of measures taken, the price situation will stabilize, Deputy Minister of Agriculture Andrei Razin said during the exhibition “Golden Autumn - 2023”. At the same time, he noted that in order to avoid a repetition of the recent situation associated with a sharp rise in prices and lack of fuel in a number of regions, it makes sense for agricultural producers to enter into direct contacts with suppliers.

This idea of ​​the department is correct, Goncharov believes. However, today many oil depots already belong to key oil companies, such as Rosneft and Lukoil. “By and large, the purchase of fuel there can be considered as direct sales. However, they, like everyone else, did not have fuel in stock, and just like everyone else, prices increased,” he recalls. And, for example, not everyone can afford to purchase fuel through the exchange. “This is a rather labor-intensive process that requires infrastructure, which few farmers can boast of - only large agricultural holdings,” Goncharov noted.

Deputy DIRECTOR of the Rodnoe agricultural enterprise from the Tula region, Dmitry Inyutin, says that in general the situation with fuels and lubricants has stabilized - the price has decreased slightly, although it is still high. “There are no shortages or tensions with supplies in our region now either,” he commented. “However, the field work season is ending, and accordingly, the demand for fuel is no longer the same as it was in August-September, when the main harvesting campaign is underway.” The regional agricultural department promised to subsidize part of the fuel costs for agricultural producers in the region, he adds.

The general director of the Tambov Farms company, Igor Polyakov, notes that in the last week, fuel prices have decreased by 6 thousand rubles. per ton. “But this is far from the level from which they began to grow,” he compares. Now they are at the level of 65 thousand rubles/t, and reached 71 thousand rubles/t. “Of course, this is an uncomfortable level for us,” Polyakov emphasizes. “Our products have not increased in price for the last 10 years, and then fuel cost 30 rubles per liter.”

According to the manager’s observations, there are currently no problems with fuel supplies; the company buys fuel directly from the regional branch of Rosneft. “How the Ministry of Agriculture’s initiative on direct purchases of fuel by agricultural producers can affect the market is unclear, given the fact that most farmers already purchase it, bypassing intermediaries,” says Polyakov. He believes that it is much more important to resolve the issue of proper distribution of subsidies. “No one will compensate us for the same fuel costs. Moreover, in the Tambov region we have stopped receiving the subsidies that we had before, for example, per hectare for grain, due to the unfair system of their distribution,” the manager complains.