Maxim Tovkailo
Vladimir Putin blasts the Ministry of Agriculture
Prime Minister Vladimir Putin spent yesterday sorting out farming problems. He began his working day by visiting the Yershovo dairy farm. Putin admired the calves, inspected the cowsheds and also toured the cow milking house. He was told that all yields were computer-monitored. One cow produces 19 litres of quality milk daily. "Cows must be flocking here," the Prime Minister joked.
But it was no fun at a meeting on the development of the agro-industrial sector. The head of government berated the work by Agriculture Minister Alexei Gordeyev. "I have to say the Ministry is taking far from effective steps in the current situation," Putin said. The things that concerned the Prime Minister most were unavailability of loans for farms, abuse of suppliers' rights by retail chains, and problems with selling this year's record harvest.
The Government will compensate costly loans by subsidising their repayment at 80% of the refinancing rate. The farmers will also be backed in their dispute with the retail chains. Currently, retailers are paying their suppliers several months after selling the produce. In fact, the farms are becoming free lenders for retail chains, Putin noted, displeased. "Payments must be made within a reasonable time," he said.
He did not rule out the adoption of a framework law regulating relations between retailers and suppliers, in addition to the law on trade the Ministry of Industry and Trade is now working on.
The Government will also protect Russian farmers against their foreign counterparts. A criticised Gordeyev asked the Prime Minister "to consider raising import duties on milk products." "Our domestic market is overstocked with imported cheese, butter, and powdered milk," the Minister said.
The Prime Minister approved Gordeyev's proposals on the whole, saying that "the Government will act more promptly in pursuing its customs and tariffs policy" to support Russian farms. In particular, quotas on vegetable oil and dairy products from Ukraine will be introduced.
The Government explains the need for quotas by an increase in food supplies from Ukraine after it joined the World Trade Organisation. These mounting supplies reduce demand for Russian farm produce.
The Government is also ready to render direct financial support to the country's agro-industrial sector. It will continue to buy surplus grain and corn from farmers. For this purpose the Government is increasing the authorised capital of Rosselkhozbank by 45 billion roubles.