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Krasnodar & Stavropol gardeners asked to restrict stone-fruit imports in the Q3-Q4 2019.

Krasnodar & Stavropol gardeners asked to restrict stone-fruit imports in the Q3-Q4 2019.

22/07/2019

The Association of nurserymen & gardeners of Stavropol Region & representatives of the Kuban Gardeners Union asked the Vice-Prime Minister of Russia Alexei Gordeev to restrict stone-fruit import during the cropping & sales period of local summer varieties. The gardeners express their concern about the prolongation of easy terms import for Serbian & Moldavian products until the end of 2019.

According to the available for TASS written request of the Association of nurserymen & gardeners of Stavropol Region, producers ask not only to restrict stone-fruit import in the Q3-Q4 2019, but also to slap higher importing taxes on these products.

The authors notice, that fruit from Serbia & Moldova are shipped to Russia at extremely low prices in the cropping period in these countries. The same products are re-exporting to Russia from Belarus, as the authors think. The main reason is the lack of fruit long-term storage capacity in these countries. It makes the producers to run their crops on the rims on the Russian market, what beats down the prices & encroaches upon interests of local gardeners, the authors suppose.

They mark, that the problem is also the top of mind in Russia. The lack of fruit long-term storage capacity makes Russian gardeners to enter the market at the same period, just after the harvesting, overstocking the market & marking-down. This causes earnings dilution & low investment potential of the sector, slows down the horticulture development in Russia. As the gardeners think, it touches upon small producers most of all, because of the lack of fruit storages & low output.

The same opinion was expressed by the representatives of the Kuban Gardeners Union in their letter to Alexei Gordeev.  According to the Kuban growers, the importing fruit-and-berry products, come to the market, leads to the decline in income of the local farmers & low tax revenues for the treasury. In order to protect the home market & food security governance of the country they ask the Vice-Prime Minister to cap imports of stone-fruit & reduce the VAT rate for local production up to 10%.

In addition the Kuban growers propose to broaden the mandate of Rosselkhoznadzor in security control of importing fruit-and-berries products & source of production certification for the products exporting to Russia.

The representative of Gordeev’s administrative office reported to TASS representative, that they haven’t got these letters yet.

Source:

05/07/2019 https://tass.ru/ekonomika/6635835