Rising Fuel Prices to Affect Agri Produce’s Prime Cost

UrBC, Yekaterinburg, June 26, 2018. The prime cost of agricultural produce is likely to go up by 20% to 25% due to rising fuel prices, head of Bitimsky Agricultural Cooperative Mikhail Maltsev told UrBC.

According to Maltsev, the prime cost of processing agricultural raw stuffs and the cost of end user delivery will go up as well.

‘Gazpromneft upped the prices by 10% in the course of a couple of days (from RUR 47,000 per 1,000 kg to RUR 52,000, with no explanations whatsoever. Everyone in this industry is naturally indignant about the price increase,’ Maltsev said.

He added certain subsidies afforded to farmers might cushion the shock. Similar measures were adopted a decade ago but had to be given up on as some farmers started re-selling their subsidized fuel for extra profit.

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