Agricultural producers are threatening by decline without government support

As a result, the year's grants can reach almost 20 billion rubles. To maintain the positive dynamics mechanical engineers require 15 billion rubles per year for three years, threatening otherwise by the decline in production, tax payments and personnel. The draft strategy of development of the branch assumes the continuation of subsidies, with a gradual decline until 2022, but officially neither they nor the additional support are approved this year.

The production of agricultural machinery in Russia for six months increased by 35%, to 59.8 billion rubles, told in an industry Association "Rosspetsmash". By segment there is a significant growth in production for four-wheel drive tractors - by 45%, to 1.37 thousand units. The production of sowing machines rose by 12%, to 5.4 thousand units, ploughs — by 9%, to 1.45 thousand units, harrows — by 11%, to 2.52 thousand units. Production of combine harvesters increased by 18%, to 3.14 thousand units, sprayers — by 23%, to 604 units, pickup balers – by 8% to 1.05 thousand units. In "Rosspetsmash" the growth is associated primarily with the existing measures of state support, and also with the release of new products, enhancing exports and improving product quality.

In June the total amount of state subsidies under the signed contracts has been exhausted and exceeded the allocated 13.7 billion rubles, so the factories stopped selling their equipment with provided earlier by the state 15-20% (depending on region) discount. The Association believes that stopping the program "will have a significant impact" on reducing the release of machinery — for the year the growth of production of agricultural machinery, estimated by "Rosspetsmash", can be up to 12%. And to maintain production rates this year it is necessary on subsidies another 4.4 billion rubles, believe in the Association.

Now the Federal budget does not provide subsidies to agricultural machinery manufacturers in 2018-2020, said in the Association. In 2018, the volume of sales will drop by 30%, tax payments to budgets of all levels will be reduced by 32%, staff will be reduced by 2 thousand people and the average monthly salary will be reduced by 12%, threatens "Rosspetsmash". The Association believes it necessary to allocate 15 billion rubles annually for the continuation of the subsidy of sales of domestic machinery.

In 2016 the producers received 11.16 billion rubles of subsidies, in 2015 - 5.19 billion rubles. According to "Rosspetsmash" in 2016 with the help of state support machinery was sold for 47.7 billion rubles, with total sales of domestic machinery for 80.7 billion rubles. According to the draft strategy of development of agricultural machinery industry, during the first phase up to 2022 the focus will be concentrated on the domestic market and upgrading of the machinery park. The subsidy program will remain, but the discount will gradually decrease: in 2021 it will not exceed 5%. The document states that it will require 45 billion rubles, which will allow additional selling of machinery for 141 billion rubles. In the Ministry of industry and trade they not have raised the issue of allocation of additional support this year.

Dmitry Babanskiy from SBS Consulting said that if the government sets the task of development of agricultural machinery building, it is necessary to continue the subsidies. Tax privileges to stimulate investments in production development and competitiveness would also help to domestic players. Traditionally, the Ministry of Finance is against, but Mr. Babanskiy emphasizes that the competitiveness of Russian goods is negatively affected by the high level of tax exemptions in the Russian economy: it is higher than in the US and the EU about half and about twice the rate of China.

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