"The Government has earmarked 102 billion roubles for the programme. This year 39 billion roubles will be disbursed and subsequently 21 billion roubles will be disbursed every year," Mr Zubkov told the Commission meeting on Wednesday. Earlier it was reported that the government programme for the development of agriculture would be financed to the tune of 1.1 trillion roubles out of the federal budget and the budgets of the Russian regions.

The increase of financing has been prompted by a massive growth of agricultural costs. The Deputy Prime Minister said that in January-June 2008 the prices of mineral fertiliser had gone up by 54% and of fuel and lubricants by 37%. The Central Bank's refinancing rate, on which the interest on agricultural loans depends, has also increased.

Mr Zubkov noted some positive trends in the development of agriculture. Over six months of this year agricultural output in Russia increased by 5.1% on the same period of 2007, while the production of meat increased by 8.3% and of milk, by 1.3%.