The report of the head of the Ministry of Agriculture in the Duma turned into a “public flogging” of the Deputy Minister of Energy

The next government hour in the State Duma turned from a traditional reporting and routine event into a “public flogging.” At the meeting held within the walls of the lower chamber with the head of the Ministry of Agriculture Dmitry Patrushev, special attention was focused not on him and his report on the development of the agro-industrial complex, but on the First Deputy Minister of Energy Pavel Sorokin, who by hook or by crook tried to fend off the attacks of his colleagues and answer the main question of the event : “Why is the production of diesel fuel growing, but it is still not available to farmers?”

During the plenary meeting in the State Duma, the head of the Ministry of Agriculture, Dmitry Patrushev, made a report on the results of the implementation of the State Program for the Development of Agriculture. In short, the plan for 2022 has been met for all program goals: agricultural production is in the black, exports are in the black, wages in the industry have grown 18% higher than in 2021.

Then the minister dwelled on the current situation in the industry. He noted that Russian agricultural producers have already harvested more than 123 million tons of grain in 2023, and up to 60 million tons of grain will be exported this season. Over 370 billion rubles have been allocated to support the agricultural sector in 2023. 85% of funds have been delivered to farmers.

The speaker also mentioned problems. The situation on the market for fuels and lubricants (fuels and lubricants) is particularly acute. The Ministry is taking the necessary measures to prevent disruptions during seasonal field work. “Over the past 10 days, the situation has improved, but it still requires special attention,” the minister emphasized.

State Duma Speaker Vyacheslav Volodin noted that the agricultural industry is of strategic importance for Russia. But why today are farmers, managers of agricultural enterprises, and machine operators forced to buy fuel in cans at gas stations? Why is it twice cheaper than wholesale?

“How did you allow prices to almost double, which is now affecting the work of agricultural producers?” Volodin asked First Deputy Minister of Energy Pavel Sorokin, who was also invited to the State Duma.

According to Sorokin, “grey exports” are largely to blame, when goods are bought on the domestic market by an unscrupulous participant and exported abroad, because the difference between the domestic price and the export price is significant – even now it exceeds 20 thousand rubles per ton. Sorokin also emphasized that the ministry is working to eliminate this problem.

“In the coming days, I hope, we will take quite radical steps,” noted the First Deputy Minister of Energy.

“Pavel Yuryevich, if you are not in the know, then it would be correct to bring the information to you. For 7 months of this year, 51.9 million tons of diesel fuel were produced, which is 6.8% higher than the same period last year. In other words, there should be no shortage. Where does the price increase come from?” Volodin asked.

The numbers are correct: production is growing. But the reason, as Sorokin explained, is the leaching of part of the goods for export due to the large difference between the price on the domestic market and imports. Meanwhile, agriculture, if we take 2022 as a basis, needs only 3.5% of the total volume of diesel fuel produced.

“Ozimka must be saved!” Deputy Speaker of the State Duma Pyotr Tolstoy practically shouted from his seat. Volodin agreed with his colleague and added that it is necessary not only to have time to sow, but also to carry out the autumn harvest.

Nikolai Kharitonov (Communist Party of the Russian Federation) took the initiative to oblige energy workers to return to agricultural producers the funds that they were forced to overpay for artificially increased prices for fuel. And independent deputy Oksana Dmitrieva proposed introducing protective duties on the export of diesel fuel so that they would stop exporting it.

In response, Sorokin noted: “We must understand that the measures we propose should not lead to shortages. If we impose protective duties without any compensation to factories, then this very quickly leads to negative economics for enterprises. We cannot allow that, while trying to solve the diesel problem, we will end up with a gasoline shortage.”

The deputies, in turn, emphasized that such an increase in fuel prices will provoke an increase in food prices. The First Deputy Minister of Energy assured them that he “feels full responsibility.” However, he could not name the exact date when the problem with the price of fuel for farmers would be resolved. Therefore, it is not yet clear whether farmers will have time to harvest and drop out.

Meanwhile, Vyacheslav Volodin instructed the relevant committees to conduct daily monitoring of the cost of fuel and lubricants.