Konstantin Babkin: Subsidies will help agricultural machinery if other government initiatives will not reduce the demand for equipment

Published: January 29th, 2016

The  important point of the new Government "anti-crisis measures" is the support of producers of agricultural machinery. The Ministry of Agriculture has decided to continue subsidizing the direction and laid in the program 10 billion rubles for these purposes. Previously it was assumed that the company will have only 1.9 billion rubles.

The growth is more than significant – the manufacturers said that to meet the growing demand the funding of the program need to be increased at least up to 8 billion rubles. Recall that the state compensates buyers of domestic appliances by 25% of its value. 30% discount is provided for the Siberian and Far Eastern regions, as well as the Crimea. In 2016 the budget only 1.9 billion rubles was laid down for these purposes. But it is noteworthy that this amount has not been sequestered. The reason is that the support beared its fruit. The program has sold 7 thousand pieces of equipment, while two years ago it was not possible to realize one thousands.

According to the president of the association "Rosagromash" Konstantin Babkin, the increase in subsidies in 2016 will allow the Russian agricultural machinery to gain momentum.

"Even against a background of economic stagnation of the country and the fall of world agricultural machinery domestic enterprises are increasing the release for the third year in a row." Rostselmash "issued 20% more technique in January 2016 than in the same month in 2015 and a year before While volumes have grown. For abroad there is another picture. I come from Canada, where the purchase of tractors fell by 50%, in two years"- he said to Nakanune.RU.

комбайн Ростсельмаш, сельское хозяйство, уборочная кампания|Фото: Ростсельмаш 

Recall that more than 200 billion rubles from the "anticrisis" money in 2015 remained unclaimed. Farmers say that they multiply grown subsidy buyers can choose, if the conditions for agriculture in Russia will not be degraded.

"While there are negative factors: loans remain expensive fuel when falling oil prices going up, which is bad for the farmers. The issue of increasing the export duty on wheat is been discussed, which could weaken the interest of farmers to purchase agricultural machinery. If the allocation of money takes place, you can count on increased production , its rate depends on any negative trends in the industry not intensifying."

МЭФ, экономика, Константин Бабкин|Фото: nakanune.ru

To feel the effect not only by sellers of technique and there customers, but also by consumers who, despite the embargo and subsidies, are feeling the growth in food prices, the "anti-crisis" have to not be separate measures of the Government but the entire government policy, concludes Babkin:

"We need to develop the entire real sector of the economy, to give people the opportunity to work, earn money and spend it. The tax cuts, interest rates, support for exports, the protection of the internal market - the transition from liberal monetarist policies to reasonably creative lead to the fact that the effect of the anticrisis all consumers will feel in the action. Under these conditions, the potential will be realized in agriculture, industry. So far we have seen point support measures, and in general the vector does not change."

Note that agricultural manufacturers are invited to Prime Minister Dmitry Medvedev, who will hold the meeting in St. Petersburg tomorrow. It is expected that the prime minister will officially announce the allocation of subsidies there.

Source: Nakanune

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