First Deputy Prime Minister Viktor Zubkov has asked leading fertiliser producers to cooperate with regional authorities in an investigation into spikes in mineral fertiliser prices in various regions in November and December.
Mr Zubkov met with the heads of leading fertilizer manufacturers to discuss the supply of fertilizer to agribusiness in 2010-2011. This year Russian farms purchased 2.1 million metric tons of fertiliser (in terms of primary nutrient weight).
Corporate management said that in January through October, fertiliser was distributed at prices 10% to 40% below the levels set in November 2009 under an agreement between the Russian Fertiliser Producers Association and the Russian Agri-Industrial Union. A slight increase in prices was recorded in November, although it did not exceed the level projected for 2010.
Industry management also assured Mr Zubkov that in the first half of 2011, fertiliser prices won't rise by more than 12.8%, while the ceiling price of potash fertiliser will remain flat at the 2010 level.
"Nevertheless, I would like you to look at the situation in each region, with the regional authorities, to verify the information." Mr Zubkov said. He also instructed the Agriculture Ministry, the Russian Fertiliser Producers Association and Russian Railways to consider the expected seasonal rise in demand for mineral fertiliser, up 20%-30% during spring sowing, and to draft a distribution schedule to coordinate the volume of fertiliser ordered with railway shipment capacity and the number of railcars required for regional shipment. The companies, in turn, confirmed their ability to fully satisfy demand.
The government will continue to monitor fertiliser distribution to Russian agribusinesses, Mr Zubkov emphasized.
The meeting was attended by management from EuroChem, Acron, PhosAgro, UralChem, Silvinit, Uralkali, Sibur Mineral Fertiliser and Dorogobuzh.
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This issue was raised by A.D.Chukanov, director of the Prigorodnoye Farm in the Tambov Region during Prime Minister Vladimir Putin's televised Q&A session.