AGRICULTURAL PRODUCERS IN TATARSTAN DISCUSSED POSSIBILITES FOR BENEFICIAL PURCHASING OF MINERAL FERTILIZERS ON THE EXCHANGE

Ministry of Agriculture and Food of the Republic of Tatarstan organized a workshop on developing exchange trade with mineral fertilizers, oil products and agricultural goods. Deputy Prime-Minister of the Republic of Tatarstan – Minister of Agriculture and Food of the Republic of Tatarstan, Marat Zyabbarov; Tatarstan agricultural producers and SPIMEX took part in the event

Opening the meeting, the Minister thanked the organizers p FAS and St Petersburg International Mercantile Exchange for choosing Tatarstan for the venue.

“Some of the basic measures for high yield crops are: moisture –accumulating tillage, mandatory foliar application, providing the necessary amount of feeding using organic fertilizers (particularly, biological technologies) and use of mineral fertilizers. For the next year, we set an objective to apply no less than 70 kg AD per hectare of field. Hopefully, the workshop will help is to fulfill our plan on accumulating fertilizers and achieve the target yield of agricultural crops at more advantageous conditions”, pointed out Marat Zyabbarov.

Moving to the main part of the workshop, Deputy Head of Tatarstan OFAS Sergey Pavlov stated that exchange means, first of all, transparency, so they are welcomed by the antimonopoly bodies.

Head of FAS Department for Control over Fuel-and-Energy Complex and the Chemical Industry, Dmitry Makhonin, outlined development of exchange trade in Russia and the advantages of purchasing fertilizers through the exchange.

“The regional workshop in Kazan is another event held by FAS to popularize and develop exchange trade with mineral fertilizers. Today all large fertilizer producers offer their goods through the exchange. Since the beginning of 2019 the total volume of applications for sale of fertilizers reached around 250.000 tons. The main task is to make the trading mechanism attracting for consumers. Regional workshops are the most efficient way to compete the task. It is essential that the workshop drew attention of the main agricultural producers in Tatarstan”, emphasized Dmitry Makhonin.

Regional Policy Director of “SPIMEX” JSC, Alexander Gudkov, described the work of St Petersburg International Mercantile Exchange. Among its advantages he mentioned, first of all, guaranteed surety for on exchange contracts and fraud protection on the fertilizers markets. “Surety – at around 5% – is submitted prior to launching trading and is given to a counteragent in cases of a refusal form a transaction. After the parties conclude a contract, 100% advance payment is put on the clearing account. The money are transferred to the seller after the buyer obtains the goods”, explained the specialist, who underlined that any agricultural producer can open and see the offers and acquire the necessary products if prices are interesting.

Head of Trade Technologies Department at “SPIMEX” JSC, Irina Nikolskaya demonstrated work of the exchange and explained how one can take part in bidding and conclude transactions, particularly, through brokers who also took part in the workshop.

During Q&A session at the end, participants answered questions from agricultural producers.