Plans have been made to radically change the approaches to pricing agricultural products in Belarus. The matter was discussed at the session of the interagency working group set up by the government to deal with problems of the Belarusian agribusiness on 10 March. The working group is supposed to work out concrete proposals to raise profits and the profitability of agricultural enterprises, reduce their debts and insolvency, reduce the prime cost of the merchandise, encourage cattle breeding and plant breeding. A number of documents have been worked out. One of them suggests changing the pricing of agricultural products. In particular, free prices are suggested as a way to raise earnings of Belarusian agribusiness enterprises. The draft document also suggests bringing about a favorable investment climate and attracting investments into Belarus’ agribusiness in addition to the furtherance of structural changes in the Belarusian agribusiness. The document also stipulates measures to raise labor remuneration in the agriculture. The draft document suggests specifying the ways for the state to support agricultural producers. State support is divided into two major branches, including direct budget funding. Indirect support measures are also stipulated. As far as direct budget support for Belarusian agricultural enterprises is concerned, the document suggests direct payments among other things. This year the norm has been implemented as markups for agricultural products. Direct payments depending on land areas and cattle numbers are suggested for the future. The document also suggests compensations for the disparity of prices, the financing of routine operations (lower prices for fertilizers, fuel, and lubricants as well as support for individual enterprises). Support for manufacturing projects in unfavorable areas is also stipulated. Work is now in progress to devise the mechanisms to implement these norms in Belarus. Another part of the draft document is dedicated to loans for agricultural enterprises.
Written by belta.by
