The Russian government is developing a plan to combat food price increases

In particular, we are talking about sunflower oil and sugar.

All relevant departments have been instructed to develop a set of measures to prevent a further rise in prices.

The assignment was Deputy Prime Minister Viktor Abramchenko November 8 gave, in particular, the Ministry of Agriculture, Ministry of Economic Development, Ministry of Industry and the FAS.

Concern is active in the food prices.

In particular, from 2 to 8 November, consumer prices rose by an average of 0.09%, while the previous week — just 0.21%. If we take the total value of food inflation since the beginning of the year, it will amount to 6.62%.

In this case, various products become more expensive at different speeds.

For example, for the week November 2-8, most rose cucumbers and tomatoes: about 2.5%.

About 1% added buckwheat, eggs, cabbage, pasta and potatoes.

Champions of the vegetable oil and sugar are on the rise in price.

They have a week added 0.2% and 0.6%, respectively.

If we take the dynamics of Russian prices during the last year, the sugar has increased in price by 10%, vegetable oil by as much as 17%.

It is in this regard, Deputy Prime Minister and asked to submit proposals to curb the further price growth in the country, given the fact that world prices are likely to continue to grow further.

What factors affect the price increase?

 

If we talk specifically about the butter and sugar, then a powerful driver of growth are the world prices.

For example, according to the UN Food and Agriculture Organization (FAO), world sugar prices are now 40% higher than last year.

Oil too expensive, including palm and rapeseed. In these circumstances, as long as there is no reason to assume that these products in the Russian market will fall in price.

At the same time, Ministry of Agriculture said that this year Russia harvested a good crop of sunflower and sugar beet, means that products of their processing should be sufficient to ensure domestic consumption.

The Ministry of Economic Development added: sugar prices can be brought down a little even on a global scale.

This will facilitate, for example, a good harvest in Brazil and Thailand. In Russia, however, it is still valid quota for the import of white sugar — it is extended until the end of this year.

In general, The government hopes that a good harvest in Russia, together with the export duty will help to prevent, at least, the rapid rise in prices.

However, what specific proposals to curb prices nominated by various departments, it is not yet known.