DEVELOPMENT OF ON-EXCHANGE TRADE TO EXECUTE THE NATIONAL PLAN WAS DISCUSSED IN KURGAN
National Competition Development Plan provides for systemic development of on-exchange trade, stimulating participation in on-exchange trade and attracting small and medium business for its development
A regional workshop for agricultural producers in Kurgan on 18 June 2019 focused on developing on-exchange trade with mineral fertilizers, grain and oil products for the purposes of production and sale of agricultural products.
Representatives of more than 60 agro-industrial companies and farms in the Kurgan region attended the event.
The workshop participants discussed development of exchange trade on the market of mineral fertilizers, the conditions for exchange contracts and were shown how trading system works: there was on-line demonstration of some work fragments of the Electronic Trading System.
Deputy Head of FAS Department of Fuel-and-Energy Complex and Chemical Industry, Natalia Yakovenko pointed out that since 2015 FAS jointly with the Central Bank of Russia, the Federal Tax Service, the Ministry of Energy, the Ministry of Industry and Trade and the Ministry of Agriculture have been undertaking systemic efforts to develop commodity exchange trading (oil products, timber, gas, sugar, grain, mineral fertilizers, coal, petroleum benzene, paraffin, propylene).
She informed that the antimonopoly body has formed FAS Exchange Committees. FAS Exchange Committee on Mineral Fertilizers is established with participation of mineral fertilizers producers, Associations and Unions of agrarian producers, the Ministry of Industry and Trade and the Ministry of Agriculture.
“Any interested market player can take part in the work of the Committee. As a result of the Committee’s efforts, in carbamide (carbonyl diamide), azophoska (nitrogen-phosphorus-potassium fertilizer), ammophos (ammonium phosphate) and ammonium nitrate were put on the market in 2018. Since 2019, these fertilizers are sold through daily on-exchange trading. The commodities are displayed and consumers can offer their prices. Exchange trade is a universal tool enabling transparent pricing in view of demand-supply trends”, summed up Natalia Yakovenko.
Head of Kurgan OFAS Tatiana Soboleva emphasized that “today exchange trade is obtaining an important trade format in terms of its organization, scope and participants. It is distinguished by publicity, free pricing, absence of direct state intervention in on-exchange trading, at the same time observing the law”.
The workshop participants highlighted the expediency of approving the minimum value of mineral fertilizers mandatory for sale through the exchange for economic entities that have the dominant position on the markets of mineral fertilizers and adopting a draft Decree of the Government of the Russian Federation “Criteria of regularity and evenness of selling goods through the exchange for particular commodity markets, where mineral fertilizers are circulated”.
The workshop also supported amendments to the regulations on providing information about off-exchange contracts, which incur transfer of title for the commodities allowed for on-exchange trading; and on keeping the Register of such contracts and providing information from it to form off-exchange price indicators for mineral fertilizers.
They also raised an issue of the need for additional refinement of the criteria for elevator certification to enable verification and prevent an increase of certification costs for bona fide market players.
The meeting Protocol, slides and photo-materials will be published on the web-site of Kurgan OFASA| under the “Exchange trade” sections, that will be created following the workshop.
Background:
Regional workshops on developing on-exchange trade already took place in Saratov, Lipetsk, Penza. They are organized jointly with St Petersburg International Mercantile Exchange and “Moscow Exchange” PJSC with involving agricultural producers from the regions, regional authorities and FAS regional Offices.