Moscow-region authorities intend to subsidize energy costs for agricultural producers

Subsidization of electricity costs, instead of the existing capital construction reimbursement for the agrarians, will result in the reduction of production prime cost, as reported by Denis Butsaev, Deputy Chairman of Government of the Moscow region and regional Minister of innovations and investments.
“Our resources indicate that the share of electricity in the greenhouse vegetables production cost structure equals to 35%. In case of reimbursing the energy consumed, the production prime cost is likely to decline. Accordingly, if 50% of electricity is compensated, production prime cost will fall by 21%”, – as Butsaev noted.
He explained that prime production cost of greenhouse cucumbers as of 70 RUB per kg, will be reduced to 52-53 RUB/kgб as a result of electricity cost subsidization.
“Such prime cost will not allow stepping closer to shadow-market vegetable prices, but it will make our vegetables competitive with legal imports”, – he emphasized.
He also added that quality control of imported products should be enhanced in Russia and Moscow region in particular, as independent researches attest to the high share of pesticides and nitrates in vegetables, illegally imported from Turkey and legally from Azerbaijan.

Source: TASS