OREANDA-NEWS. July 27, 2009. The state support for agricultural industry in Belarus and Russia will be discussed at the joint session of agricultural ministries of the two countries in September 2009, Agriculture Minister of Belarus Semyon Shapiro told.

“We would like to discuss the harmonization of our agricultural policy, in particular, the state support for the agricultural industry,” Semyon Shapiro said.

According to him, three task groups have been set up to study the issues that are to be discussed by the joint session. “Apart from budget support, we will analyze the economic conditions in which Belarusian and Russian farmers work,” the Minister said.

He believes that the working conditions of agricultural producers of the two countries should be the same. “This will ensure sound competition giving advantage to those who use their production potential more efficiently,” Semyon Shapiro said.

The minister told reporters about agricultural subsidies in Belarus. Around Br1 trillion is allocated from the national budget, Br2.5 trillion comes from the fund of the support of agricultural producers. The finances are also allotted from regional budgets. The total sum of agricultural subsidies is around Br4 trillion. Yet, in Russia the prices for energy, fuels and lubricants are much lower.

“We do not have subsidies per one tonne of products. All the money is allocated for the following purposes: we half the cost of mineral fertilizers and subsidize the purchase of tractors, grain and fodder harvesters, loaders, ploughs, soil-tilling equipment of both Russian and Belarusian make,” Semyon Shapiro said.

Agricultural producers are entitled to soft loans. “We have adopted the Russian experience here,” the minister said. “But there are no subsidies as per 1 kilo of products,” Semyon Shapiro said.