Having launched manual price controls amid accelerating inflation, the Russian authorities seem unable to stop.
After sugar and sunflower oil, poultry meat and eggs were artificially frozen.
Following the meeting in the government, the producers committed themselves not to raise price tags for at least two months, Sergei Lakhtyukhov, general director of the National Union of Poultry Breeders, told RIA Novosti.
He added that this decision is “voluntary”, and in return, business expects from the state to expand state support – more preferential investment loans and subsidies per kilogram of manufactured products.
According to Rosstat, chicken meat in Russia has risen in price by 6.9% since the beginning of the year and 1.9% in the last week. Egg prices added 1.1% in the week and 2.6% in February. Headline inflation accelerated to 5.6% and hit a record since November 2016.
The Ministry of Agriculture explains what is happening with three reasons. This is an increase in the cost of feed, a decrease in production volumes due to the spread of avian influenza, as well as a decrease in the supply of imported hatching eggs due to the complication of the epizootic situation in the EU countries.
To solve the problem, the department is preparing a package of measures. First, it is proposed to introduce import duties on import hatching eggs: 5% from 2022 and 15% from 2023. The goal is to “reduce the industry’s dependence on imports” of eggs and “develop their own production,” explains the Ministry of Agriculture.
In addition, it is planned to increase the limit on preferential loans for the poultry industry from 1 to 1.5 billion rubles per borrower, and to companies affected by bird flu to prolong loans for 12 years.
The possibility of recovering capital costs for the construction and modernization of hatching egg production facilities from 2022 is also being considered.
Another support measure can be compensation for part of the costs per 1 kilogram of manufactured and sold products. This decision may be valid until October 1 of this year for poultry enterprises that do not increase selling prices, added the Ministry of Agriculture.