Russian manufacturers of agricultural machinery have asked the government to allocate an additional 6 billion rubles as part of the program to subsidize the purchase of machinery. The letter was sent to the cabinet by the association of special equipment manufacturers Rosspetsmash, writes the National Agrarian Agency.

It is a decree from 2013, which returns to manufacturers 10 - 15% of the cost of their products and allows them to sell machines with the same discount. Subsidies are paid upon sale.

This year the authorities allocated 10 billion rubles for this program. However, the Rosspetsmash believes that 6 billion more is needed because of the increasing metal prices and rising production costs. Experts reckon that otherwise the equipment for agricultural producers will become 10 to 30% more expensive.

This may trigger another spike in food prices, according to Rosspetsmash. Farmers will have to buy combines, seeders and other equipment without any discount, and they will have to add these costs to the cost of their wheat, sunflower, sugar beet and corn, they warn.

Made in Russia / Made in Russia

Author: Maria Buzanakova