An annual exhibition titled "Golden Autumn" has opened up in Moscow. This year, the exhibition is held for the 20th time and is especially large. Farmers from all parts of Russia have brought their products to VDNKh. These include not only various delicacies, fruits, vegetables, crops, and seeds but also farm equipment. The exhibition is also a trade fair. People living in Moscow traditionally purchase groceries here. The event also has a business agenda, which is quite unusual and even extraordinary this time. The plenary session, which we were invited to by tradition, was attended by ministers of agriculture from Japan, Hungary, Qatar, Nigeria, and Turkey as well as the head of the World Organization for Animal Health.
Dmitry Patrushev, the Russian Minister of Agriculture, informed them that in addition to regular diplomats, Moscow plans to send 500 agricultural attaches abroad. Now, what food products can the country, that up until recently imported food, start to export?
Let's take a look at the statistics which President Putin shared earlier in Stavropol Krai. The Russian food sovereignty goals have been met and even exceeded in a number of instances. Here are some figures for grains. Take a look. In order to reach food self-sufficiency, the goal for the production of grains was set to 95%. Instead, the figure is now at 170%, which means that we can continue to increase our exports. What else do we have here? The goal for sugar was 80%, while the actual production is at 105% due to high demand. The goal for vegetable oil was 80%, however, the production rate has reached 153%. What else? The goal for meat and meat products was 85%, the production is at 93%. We're seeing some imports here. But even though we continue to import meat, it looks like soon enough there will be so much of it that we'll begin to export it.
But what can we do to make sure that the story with oil doesn't repeat itself? The increase in our oil prices in the global market sometimes leads to higher gas prices both here and there. At the Golden Autumn exhibition, we found out what happened to an idea which farmers discussed earlier with the president and the prime minister, It was decided that abolishing the agricultural subsidy tax would also apply to subsidies for export-oriented barns and terminals.
At the Golden Autumn exhibition, I asked Alexey Gordeyev, the Deputy Prime Minister for the Agriculture Sector, to put these economic measures into plain language for regular farmers and buyers.
- Mr. Gordeyev, I just commented on the statistics. Are they correct?
Alexey Gordeyev, Deputy Prime Minister for the Agriculture Sector: We did significantly increase the production. As a matter of fact, it's evident from the grocery store shelves, which are full despite the sanctions. Our store shelves don't look very different from those in any European country.
- How can the prices be reduced? Yesterday, for the first time, the president and the prime minister met up to discuss a matter, which up until yesterday only experts were interested in. However, now everyone understands that the government plans to cut the VAT on fruits. Will it help lower the prices?
- I think it's safe to assume that it will. Next year, the VAT will be brought down from 20% to 10%, which will allow the sellers to lower the prices. But you also have to understand that in addition to such good, well-thought-out measures by the government, we need to encourage competition. In this regard, the farming and agriculture sector…
- You referred to it as the agricultural system earlier, I really liked that.
- It is a system, but the thing is, the entire sector has been privatized. Right. The competition in the sector is quite fierce both within the country and between various importers. The competition for customers should be encouraged because it also helps lower the prices.
- So no one's going to receive special treatment and maximum competition will be enforced?
- Of course, no one's going to get special treatment. It's the main instrument of a market economy: competition, competition, and more competition.
- You proposed an idea earlier. What's it called? The system of rural regions? What's it about?
- It's about the sustainable development of rural areas.
- But we already have a rural region development plan. What are we missing?
- Frankly speaking, it lacks funding. Only 16 billion rubles were earmarked for the entire country. To put it into perspective, that's how much one modern stadium would cost.
- Are you trying to keep people in rural areas? I looked it up: in Europe, only 1.5-2% of the population is still living in rural areas, but they have enough food for everyone.
- The thing is, we have to admit that in Europe, the quality of life in rural areas is the same as in the city.
- Or almost the same.
- It's a pressing issue in our country. We need to keep our farms. In fact, it's important on the geopolitical level. Besides, as Rasul Gamzatov once said, "Cities have a population, but the people live in the countryside." We should never forget this.
– Thank you!
