OREANDA-NEWS. September 05, 2007. Belarus’ flax industry is the only unprofitable agricultural branch left, Belarus’ Prime Minister Sergei Sidorsky said at a session held in the Dubrovno region to discuss the development of the Belarusian flax industry, reported the Official website http://www.government.by.

Meanwhile, in his words, the government fulfilled its obligations concerning the financing of flax cultivation and harvesting programmes and equipment of agricultural companies. With the essential support provided, flax industry companies might have done better. They should have become profitable. However, over the last three years the companies have had negative profitability, remarked the Prime Minister.

Sergei Sidorsky demanded it should be cleared what machines agricultural companies lack to fully observe flax cultivation technologies. “They have machines, but use them extremely irrationally,” believes the Premier. Besides, there are problems regarding technological solutions and design. He tasked the Agriculture and Food Ministry and the National Academy of Sciences of Belarus with working out proposals about the possibility of setting up joint ventures to produce machines that flax cultivating companies need within three days.

According to Sergei Sidorsky, the government takes measures to further financially rehabilitate the flax industry. He pointed out Orsha Flax Factory has not fully paid for flax fibre that flax mills supplied in previous years, thus worsening the industry’s financial situation. That is why stricter measures will be taken to control timely payments for flax fibre. A resolution is being prepared to restructure the existing overdue debt of Orsha Flax Factory.

The Prime Minister believes, problems concerning the development of the flax industry should be considered together with other problems, including problems of processing companies.

Sergei Sidorsky also said, this year at least 60,000 tonnes of flax fibre has to be produced in Belarus.