The Ministry of Industry and Trade is preparing to reconsider the issue of introducing quotas for the import of plant protection products (PPPs) at a subcommittee of the Ministry of Economic Development, the department told RG. Quotas may be introduced from the beginning of 2024 until the end of the season (June 30), market participants said. Domestic producers assure that they are ready to more than cover the under-imported volume.
According to RG, the quota parameters have already been approved - it will be allowed to import 15 thousand tons of the main groups of pesticides. But the date for introducing the quota is still being discussed: if previously it was about the period from October 1, 2023 to April 30, 2024, now the deadlines have been shifted to January 1 to June 30, 2024.
Deputy Director of the Russian Union of Plant Protection Chemical Manufacturers Viktor Grigoriev says that 15 thousand tons for six months is only half as much as was imported into Russia without quotas. About 220 thousand tons are consumed in the country, and the share of imports is no more than 30%. At the same time, the expert is convinced that domestic producers are ready to fully satisfy the needs of the domestic market even now: the capacity is designed to produce 380 thousand tons of plant protection products. Quotas will make it possible to load empty capacities, stimulate the opening of new production facilities, localize the production of active substances and increase the export of Russian plant protection products.
But not everyone shares this optimism. Chairman of the Board of the Union of Grain Exporters Eduard Zernin says that he does not understand the motives for imposing quotas on the import of plant protection products. “If in the case of seeds we are actually talking about the creation of a new, investment-intensive industry, then in the case of the production of plant protection products, not a single new investment project has been announced. Just as there is no real import substitution. Almost all active ingredients are produced abroad. Russian manufacturers simply mix imported starting active ingredients and sell the result as a domestic product. They do this well without restricting competition, their market share is growing steadily, as is the profit, which they actively invest not in import substitution, but in the purchase of non-core assets for them, such as agricultural land," - Zernin comments. In his opinion, the agricultural producer whose cost of production will continue to grow will be the extreme one in this situation.